Syndication is said to be going strongly on the $390 million credit facility backing Texas Pacific Group and J.P Morgan Partners' $770 million acquisition of Kraton Polymers from Ripplewood Holdings. "I'd be surprised if that deal doesn't get oversubscribed," a buysider said. "I suspect that it could get flexed down slightly." Price talk is at LIBOR plus 23Ž4% for the $330 million "B" loan and LIBOR plus 21Ž2% for the $60 million revolver. The "B" loan matures in 2010 while the revolver is due in 2008. The company is also issuing $230 million of senior subordinated notes. Goldman Sachs and UBS are leading the facility.
The EBITDA of the company is said to be $104.4 million, according to a source (LMW, 11/24). Kraton is a special chemical company that produces styrenic block copolymers (SBCs). SBCs enhance the performance of adhesives, sealants, footwear, packaging, compounding and personal hygiene products. The specialty chemicals are a good market, the buysider said. "Business people can get a handle on it."