SABIC to finance GE deal with $8.7bn in debt

21 May 2007 23:25  [Source: ICIS news]

NEW YORK (ICIS news)--SABIC will finance its $11.6bn (€8.6bn) acquisition of GE Plastics with $8.7bn in bonds and bank debt, SABIC’s chief executive said on Monday.

“We will use commercial financing and issue bonds, along with equity financing from SABIC,” SABIC CEO Mohammed Al-Mady told ICIS news in an interview. “Borrowings will amount to around $8.7bn, and the rest will be equity from SABIC.”

SABIC already has financing commitments in place, and is in the process of securing those commitment, he added.

SABIC beat out a number of strategic and private-equity players to acquire GE Plastics for $11.6bn plus some assumed liabilities. The liabilities are mainly employee benefits, noted Al-Mady.

($1 = €0.74)
By: Joseph Chang
+1 713 525 2653

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