Polymer Group to get debt financing for acquisition by Blackstone

By Sara Rosenberg

New York, Oct. 4 - Polymer Group Inc. plans on getting new debt financing to help fund its buyout by the Blackstone Group, according to a news release.

Citigroup, Morgan Stanley, Barclays and RBC are the lead banks on the debt.

Other funding will come from equity.

Under the agreement, Polymer Group is being acquired for $18.16 in cash per share.

A portion of the price totaling $64.5 million, or $2.91 per share, will be deposited in an escrow account at closing and will be available to cover potential tax liabilities, costs and expenses related to the application of the "personal holding company" rules of the Internal Revenue Code.

Closing on the transaction is expected to occur prior to the end of the first quarter of 2011, subject to expiration or termination of the waiting period under the Hart-Scott-Rodino Antitrust Improvements Act, and receipt of consents required under certain foreign merger control laws. It is not subject to financing.

Polymer Group is a Charlotte, N.C.-based producer of nonwovens for the hygiene, wipes, medical and industrial markets.

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