Belgium’s Etex Group said Monday that it has secured EUR1.3bn of credit facilities to finance the acquisition of the European plasterboard division of Lafarge, part of which will be refinanced in the bond market.
Lafarge’s division will be combined with the South American plasterboard activities of Etex and Lafarge in a new entity to be 80% owned by Etex and 20% owned by Lafarge, Etex said.
The new loan financing is divided into a EUR550 million five-year revolving credit facility, a EUR300 million three-year amortizing term loan, and a EUR450 million 12-month bridge loan facility that is expected to be refinanced in the bond market, Frederic Deslypere, Group CFO at Etex told Dow Jones.
The credit facilities will also refinance Etexco SA and Etexco NV’s existing EUR500m loan agreed in 2009.
Banco Santander, BNP Paribas Fortis, Credit Agricole, ING Belgium, KBC Bank and Lloyds TSB are mandated lead managers and bookrunners on the deal.
The new entity created by the acquisition will have a revenue of around EUR1bn, according to Etex.