OMNOVA Solutions to raise $250m for Eliokem acquisition

12 October 2010 15:30  [Source: ICIS news]

TORONTO (ICIS)--OMNOVA Solutions plans to issue $250m (€180m) in senior notes, primarily to help finance its planned acquisition of Eliokem, the US-based specialty chemicals producers said on Tuesday.

OMNOVA said proceeds from the notes, together with a new term loan of about $200m, would be used to fund the purchase price for France-based specialty chemicals producer Eliokem, but also to replace or repay existing loans.

OMNOVA last month agreed to acquire Eliokem, a former Goodyear business unit, to create an emulsion polymer and specialty chemicals producer with sale of $1bn/year.

The note offering was subject to financial market conditions, OMNOVA said without disclosing detailed terms.

($1 = €0.72)

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