Apollo purchase of IMC Global businesses to produce $200 mln junk bonds

By Paul A. Harris

St. Louis, Mo., Oct. 24 - Apollo Management LP's purchase of two businesses from IMC Global Inc. will likely result in the issuance of approximately $200 million of high-yield debt as part of the $640 million financing for the deal, sources following the transaction told Prospect News.

One source said that the initial bank financing contains a "$200 million high yield bridge facility." The source identified Credit Suisse First Boston as the investment bank leading the facility. That loan is intended to be replaced with high yield bonds.

The financing also includes a $480 million senior bank facility, led by J.P. Morgan and Deutsche Banc Alex. Brown, the source added.

Apollo Management is acquiring the salt and Ogden businesses of IMC Global Inc. Apollo Management has not yet publicly identified the entity for which it is making the acquisition.

IMC Global's Ogden, or Great Salt Lake, evaporation facility produces solar salt, a specialty potash known as sulphate of potash (SOP) and magnesium chloride, according to a recent press release, which added that the company announced plans in February 2000 to divest both the salt and Ogden businesses which were classified as discontinued operations, effective December 31, 2000.

Apollo Management is a private investment firm in New York City.

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