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Fri 23 Jul 2010 02:11 PM

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Dubai to get $535m underwritten Almatis financing

Dubai Int'l also plans to inject $100m of capital into Almatis as part of revamp proposal.

Dubai to get $535m underwritten Almatis financing
DUBAI INTERNATIONAL: 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.(Getty Images)

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)

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