The $1.8 billion financing backing Koch Industries' $4.4 billion acquisition of INVISTA is set to hit the market this week with J.P. Morgan, Deutsche Bank, Credit Suisse First Boston and Citibank taking the lead. The facility comprises a $400 million revolver, $150 million "A" loan and $1.25 billion "B" loan. Price talk is around LIBOR plus 3% on the "B" loan and LIBOR plus 23/4% on the pro rata. The "B" loan matures in seven years, while the pro rata is due in six years. "We think it's an interesting deal, like everything right now we think it's getting priced a little too tight," one buysider said.
Koch plans to merge textile manufacturer INVISTA, formerly DuPont Textiles & Interiors, with its own fibers unit, KoSa. KoSa expects to refinance its debt as part of the transaction (LMW, 11/24). The company has a $200 million revolver, $247 million "A" loan and $222 million "B" loan. A Koch spokeswoman, a KoSa spokeswoman and William Pickett, INVISTA's cfo, did not return calls.