Koch Industries will use one of the largest-ever single bank loans to buy forest products and paper firm Georgia-Pacific. The $13.2 billion takeover offer involves an $11 billion bridge loan from Citigroup that is believed to be not conditional upon financing – meaning Citi must take up the slack if it is unable to pass on any of the loan. No further details have been released.
Under the terms of the deal, Koch will offer $48 a share for Georgia-Pacific, 39% above the closing share price on the day of the announcement, November 11.
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