Dubai International Capital LLC is offering junior lenders a 40 percent stake in Almatis, a maker of alumina products, in a debt-for-equity swap, according to two people familiar with the matter.
The private-equity investor, based in the United Arab Emirates, will retain a 60 percent stake, said the people, who declined to be identified because the talks are private. Almatis was bought by Dubai International in 2007 in a deal funded by almost $1 billion of debt, according to data compiled by Bloomberg.
Banks including UBS AG and Bahrain-based Arab Banking Corp. provided $970 million of loans, including $235 million in junior debt, to fund the leveraged buyout of Almatis, Bloomberg data show. The company breached terms of the loans in the first half of 2009 as the global economic slowdown hurt demand for its products, the people said.
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