White & Case Advises Bank Syndicate on Arkema's Capital Increase
Global law firm White & Case LLP has advised the syndicate of banks led by Natixis, as Sole Global Coordinator, Joint Lead Manager and Joint Bookrunner, and including BNP Paribas, Citigroup Global Markets Limited, Crédit Agricole Corporate and Investment Bank and Société Générale, acting as Joint Lead Managers and Joint Bookrunners, on Arkema’s capital increase of approximately €350 million.
The capital increase with preferential subscription rights aims at financing a part of the acquisition price of Bostik, a leading global adhesive specialist in industrial manufacturing, construction and consumer markets and wholly-owned company of the Total Group.
Arkema, a global chemical company and the leading chemicals producer in France, proposed an enterprise value of €1.74 billion for the acquisition of Bostik on September 18, 2014. If the offer is accepted by Total, completion will remain subject to the legal information and consultation procedure, as well as to the approval of the relevant antitrust authorities.
Through this acquisition, Arkema would achieve pro forma sales of approximately €7.6 billion for 2013. The financing structure, designed to protect Arkema's balance sheet and credit rating, is composed of a bridge loan, part of which has been refinanced by a €700 million hybrid securities issuance in late October 2014, with the balance expected to be refinanced by the capital increase, as well as a senior bond issue in the coming months, depending on market conditions.
The White & Case team in Paris which advised on the transaction was led by partners Philippe Herbelin and Thomas Le Vert with support from associate Antonin Deslandes. Partner Colin Chang and counsel Max Turner advised on U.S. law aspects and partner Alexandre Ippolito, with support from associate Marcus Schmidbauer, advised on tax matters. Partner Raphaël Richard with support from associates Julien Chameyrat and Aïssatou Bah advised the bank syndicate on the bridge loan.
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