Daily News: April 4, 2018

Goldman Sachs Supports Grace Acquisition of Albemarle Unit


W. R. Grace completed the $416 million acquisition of the Polyolefin Catalysts business of Albemarle. The acquired business primarily develops and manufactures proprietary and custom-manufactured single-site catalysts as well as metallocenes and activators used in the production of plastic resins.

According to a related 8-K filing, Goldman Sachs served as administrative agent for a seven-year, $950 million term loan and a five-year, $400 million revolving credit facility to support the transaction. Goldman Sachs, Citigroup Global Markets, Deutsche Bank Securities, HSBC Securities and JPMorgan Chase Bank were joint lead arrangers and bookrunners.

The term loan credit facility will amortize in equal quarterly installments in aggregate annual amounts equal to 1.00% of the original principal amount thereof. The proceeds were used to repay in full the outstanding borrowings under the credit agreement, dated February 3, 2014 by and among Grace, Grace-Conn and Grace GmbH. KG, as well as fund Grace’s Albemarle acquisition. Grace also intends to make a $50 million voluntary contribution into its U.S. defined benefit pension plan from the proceeds. The revolving credit facility replaces Grace’s previous revolving credit facility and was undrawn at the close.

The acquisition includes production plants in Baton Rouge, LA and Yeosu, South Korea; R&D and pilot plant capabilities and a portfolio of intellectual property.

“This acquisition significantly enhances our position in the fastest growing polyethylene segment and fills out our polyolefin catalysts portfolio,” said Grace Chairman and CEO Fred Festa. “With the rising demand for sophisticated resins, Grace is committed to growing this business by investing in single-site catalysts technologies to fully support our global polyethylene manufacturing customers.”