AFG Reveals Financing Package for Management-Led Buyout

AFG Industries on Monday disclosed details of its financing package to take the company private in a management-led buyout valued at $1.066 billion.

AFG management, through Clarity Industries, will purchase all of AFG’s 28.5 million shares for $33 a share in cash, as well as pay off $64 million in debt, according to Gary Wilson, chief financial officer.

Chase Manhattan Bank will provide the bulk of the financing with a $625-million loan, Wilson said. The remainder of the purchase price will be provided by Drexel Burnham Lambert in the form of $250 million of privately placed high yield bonds and $150 million through the sale of preferred stock to Glaverbel S. A., a Belgian company.

AFG will raise an additional $30 million through the sale of new stock, to be issued by Clarity Industries, and will complete the financing with $78 million from a general purpose fund, Wilson said.