JLL lines up financing for $2.6B Patheon, DSM deal

Private investment firm JLL Partners this week laid out its plan to combine Patheon ($PTI), a Canadian contract manufacturer it already controls, with the CMO operations of Dutch Royal DSM in a $2.6 billion deal that will make the new company a significant force in the industry. Now, it has laid out its plan to pay for the deal. According to Reuters, JLL has lined up a $200 million, 5-year revolving credit facility and a $1.15 billion, 7-year term loan B, turning to UBS, JP Morgan, Jefferies, KeyBank and Morgan Stanley for the financing. JLL said Tuesday that it would lay out $489 million in cash and give DSM Pharmaceutical Products a $200 million note for 51% ownership in the new company. It will also contribute Patheon, which it values at $1.95 billion. It said the new company, which has yet to be named, will have sales approaching $2 billion a year. Story | More

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