UBS and Goldman Sachs will hold a bank meeting in the first days of December launching the bank financing backing Texas Pacific Groups' acquisition of Kraton Polymers from Ripplewood Holdings. Different purchase price numbers have been reported, ranging between $770-790 million. One banker said it is much closer to the higher end when expenses and fees are included. The debt financing will likely be $600 million, comprised of bank debt and bonds.
Terms being discussed are for a $315 million "B" loan and $245 million of bonds, according to one buysider. There will also be an undrawn revolver. The EBITDA of the company is said to be $104.4 million, according to a source.
Officials at UBS declined comment and Goldman bankers did not return calls. A spokesman for Texas Pacific also declined comment.
Kraton is a specialty chemicals company and a producer of styrenic block copolymers (SBCs). SBCs enhance the performance of adhesives, sealants, packaging and personal hygiene products. UBS acted as the merger advisor to TPG, Morgan Stanley and Credit Suisse First Boston advised Ripplewood.