Blackstone Taps Morgan Stanley, Deutsche Bank For Chemicals LBO

Morgan Stanley and Deutsche Bank are leading the financing package backing The Blackstone Group's E3.1 billion acquisition of German chemical company Celanese.

  • 21 Dec 2003
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Morgan Stanley and Deutsche Bank are leading the financing package backing The Blackstone Group's E3.1 billion acquisition of German chemical company Celanese. Since 60% of the company's revenues are in U.S. dollars, the bank debt will probably mirror that, according to a source. Blackstone officials said it was too early to determine how much of the debt would be in U.S. dollars. "We're still trying to determine the ideal structure," said Chinh Chu, senior managing director with Blackstone. "Part of what we're trying to figure out is how to match the debt with cash flow." Blackstone has formed an affiliate, BCP Crystal Acquisition GmbH & Co., which will purchase the company.

There is a growing trend of private equity transactions being done in Europe. Last year was the first time European deals were higher in number and amount value than the U.S., Chu said. "Germany is one of the top two countries in Europe for private equity deals," he added. "The restructuring of German companies is continuing to accelerate." Completion of the deal is still several months away. "The likelihood of the transaction being closed much before the spring is remote," a Blackstone spokesman said.

Deutsche Bank officials did not return calls. A Morgan Stanley banker declined comment on the structure.

  • 21 Dec 2003

GlobalCapital European securitization league table

Rank Lead Manager/Arranger Total Volume $m No. of Deals Share % by Volume
1 BNP Paribas 10,542 20 17.55
2 Bank of America Merrill Lynch (BAML) 6,103 21 10.16
3 Citi 5,130 13 8.54
4 JP Morgan 4,681 6 7.79
5 Morgan Stanley 4,137 11 6.89

Bookrunners of Global Structured Finance

Rank Lead Manager Amount $m No of issues Share %
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1 Citi 81,261.11 236 11.54%
2 Bank of America Merrill Lynch 66,433.81 187 9.43%
3 Wells Fargo Securities 57,637.40 170 8.18%
4 JPMorgan 53,570.42 158 7.61%
5 Credit Suisse 45,349.30 117 6.44%