Sumitomo likely to acquire 44% stake in Excel Crop Care

Japan-based conglomerate Sumitomo is looking to acquire a 44% stake in India-based agrochemical firm Excel Crop Care for a consideration price between INR 12 – 13bn.

Sumitomo plans on buying out a 24.7% equity stake held by owners, the Shroff family, and a 19% stake held by two other shareholders Ratnabali Investments.

Meanwhile, Australia-based shareholder Nufarm, a seeds manufacturer, which holds c.14% stake in Excel, would retain its stake in the company.

Excel is engaged in the export of agrochemicals to the U.S and Europe.

Source: Economic Times


Dell finalizes $16bn of investment-grade debt

According to sources, computer manufacturer Dell plans to issue about $16bn of secured bonds to finance its $67bn acquisition of data storage products manufacturer EMC.

Dell would upsize the issuance further depending on investor appetite. The company could downsize the $8bn term loan B that backs the debt of c. $49bn financing the acquisition, if investor demand is sufficient.

The company is also in talks with banks to upsize its $7bn term loan A which is part of the debt financing the acquisition.

Pricing of the 3-year term loan A was 200bps over Libor and that for the 5-year term loan B was 250bps over Libor.

Debt of $49.5bn outlined to finance the acquisition comprised of a $8bn Term Loan B, $3.5bn of term loan A1 and A2, a $2.5bn acquisition facility and $3bn revolver.

Further, $16bn of secured notes, $9bn of unsecured notes and a $4.9bn bridge financing facility are also part of the debt financing the acquisition.

Source: Reuters




Pacific Exploration receives $830m bid from EIG

Pacific Exploration received a $830m bid from private equity firm EIG Global Energy Partners, which argues that its bid was superior to the one selected last month by the company’s board.

The bid comes ahead of its restructuring-related court hearing on Tuesday in Canada.

Previously, the company’s board selected a bid submitted by Catalyst Capital Group, which had support from debt holders holding more than 75% of the company’s debt.

EIG’s new bid was considered to be superior to Catalyst’s offer, according to the company’s CEO R. Blair Thomas.

Washington-based EIG argued in its letter that the total creditor recovery of $830m in its new bid was 67% higher than the Catalyst offer and the implied enterprise value of $1.53bn was 39% higher too.

The $300m in sponsor equity contributed to the company was 20% higher in the new bid than what Catalyst proposed, the letter said. The $550m in total cash contributed to the company was also 10% higher than Catalyst’s. EIG said the binding offer will expire May 31.

Source:  Globe and Mail