Dubai Int'l also plans to inject $100m of capital into Almatis as part of revamp proposal.
Dubai International Capital, which is seeking to retain its control of Almatis, got $535m of underwritten debt financing that would help repay lenders of the German alumina-products maker, two people familiar with the matter said.
Blackstone Group's unit GSO Capital Partners LP, Sankaty Advisors, GoldenTree Asset Management, Bank of America Corp. and JPMorgan Chase & Co committed to the private placement of the senior secured notes to repay Frankfurt-based Almatis’ top-ranked creditors including Oaktree Capital Management, said the people, who declined to be identified because the information is private.
Dubai International also plans to inject $100m of capital into Almatis as part of the refinancing proposal, which got approval from more than two-thirds of Almatis’ junior lenders, said the people. Dubai International plans to file the proposal to a US bankruptcy court tomorrow, the people said.
Gill Ackers, a London-based spokeswoman for Dubai International, declined to comment.
Under Dubai’s proposal, Almatis’s junior lenders would write down 100 percent of their debt in exchange for less than a 50 percent stake in Almatis, the people said.
Dubai International is challenging a plan by Oaktree, the biggest senior lender, to seize control of Almatis after the German unit violated loan terms last year.
Dubai International paid about $1.2 billion for Almatis in 2007, according to a court filing. The deal was financed with $970m of loans underwritten by banks including UBS AG and Bahrain-based Arab Banking Corp., Bloomberg data show. (Bloomberg)