The $475 million credit backing The Cypress Group and Goldman Sachs Capital Partners' $1.165 billion acquisition of Cooper-Standard Automotive came to market last week after a delay due to an injunction on the sale. The seller, Cooper Tire & Rubber Co., reached an agreement with the United Steelworkers of America (USWA) that ends the injunction and dismisses Cooper's appeal in the U.S. Seventh Circuit Court of Appeals.
USWA filed a complaint Sept. 27 asserting it has the right to require the buyer to negotiate new labor agreements before a sale takes place (LMW, 11/15). A U.S. District Court in Indiana granted a preliminary injunction on the sale of four of the 47 Cooper-Standard facilities--located in Auburn, Ind., El Dorado, Ark., and two in Bowling Green, Ohio.
Deutsche Bank and Lehman Brothers are leading the credit and Goldman Sachs and UBS serve as co-documentation agents. The credit comprises a $125 million revolver, a $90 million "A" loan, a $75 million "B" loan and a $185 million "C" loan. The revolver will be undrawn at close. Roger Hendriksen, director of investor relations at Cooper, and Lehman bankers did not return calls. Spokesmen from Cypress Group and Deutsche Bank declined comment.