Georgia-Pacific/Koch Deal Hits Market

The $21 billion credit backing the acquisition of Georgia-Pacific Corp. by Koch hit the market last Tuesday.

  • 13 Jan 2006
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The $21 billion credit backing the acquisition of Georgia-Pacific Corp. by Koch hit the market last Tuesday. The underwriter of the $11 billion in loans is Citigroup. JPMorgan and Deutsche Bank are the joint bookrunners on the deal (CIN 1/9). The financing consists of a five-year, $1.5 billion revolver; a five-year, $2 billion "A" term loan; a seven-year, $5 billion "B" term loan and an eight-year, $2.5 billion second-lien loan. Koch is acquiring Georgia-Pacific for a total of $21.2 billion, which includes cash and the assumption of assumed or refinanced debt.

Pricing on the revolver, term loan "A" and term loan "B" is set at LIBOR plus 2 1/4%. The second-lien loan is priced at LIBOR plus 3 1/2%. The deal is set to close around the end of January.

Headquartered in Atlanta, Georgia-Pacific is one of the world's leading manufacturers and distributors of tissue, pulp, paper, packaging, building products and related chemicals. They employ over 55,000 workers in 300 facilities throughout the U.S., Canada and 11 other countries. Calls to Georgia Pacific and Koch were not returned. A Citigroup spokesman was unavailable for comment. JPMorgan and Deutsche Bank spokesmen declined comment.

  • 13 Jan 2006

GlobalCapital European securitization league table

Rank Lead Manager/Arranger Total Volume $m No. of Deals Share % by Volume
1 BNP Paribas 12,508 23 18.18
2 Bank of America Merrill Lynch (BAML) 8,059 25 11.72
3 Lloyds Bank 5,761 18 8.38
4 Citi 5,606 15 8.15
5 JP Morgan 5,007 7 7.28

Bookrunners of Global Structured Finance

Rank Lead Manager Amount $m No of issues Share %
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1 Citi 94,444.52 266 11.16%
2 Bank of America Merrill Lynch 79,057.17 220 9.35%
3 Wells Fargo Securities 69,655.75 196 8.23%
4 JPMorgan 69,110.65 196 8.17%
5 Credit Suisse 56,930.26 144 6.73%