LONDON, Jan 10 (Reuters) - Credit Suisse is leading a leveraged loan financing totalling 585m-equivalent to back private equity firm Blackstone's buyout of cigarette filter business Acetow, banking sources said.
Blackstone agreed to buy Acetow in December for 1bn from Belgian chemicals group Solvay, following an auction process.
Credit Suisse is leading the leveraged loan alongside Bank of America Merrill Lynch, Barclays, Deutsche Bank, Goldman Sachs, RBS and UBS, the sources said.
The dual-currency leveraged loan will be split between 380m-equivalent dollar-denominated tranche and 205m tranche.
The loan is expected to be syndicated to institutional investors in the coming weeks, the sources added.
Blackstone declined to comment.
Acetow made 542m in sales last year, down 16%. More than 90% of Acetow's revenues come from cigarette filters.
Solvay said the sale represented a multiple of seven times Ebitda and would generate a capital gain of 150m to help to reduce its debt level. The deal is expected to be completed in the first half of 2017. (Editing by Christopher Mangham)