NEW YORK — The partnership led by oilman T. Boone Pickens Jr. has agreed to help provide financing for investor Paul Bilzerian's $1.06-billion takeover of Singer Co., a group headed by Bilzerian announced Wednesday.
The agreement by Pickens' Mesa Holding Limited Partnership to provide up to $150 million in junior subordinated financing for the $50-a-share buyout offer completes commitments for the financing needed to complete the deal, the Bilzerian group said.
Bilzerian also has commitments from a syndicate of banks to provide as much as $540 million in margin financing and from the investment firm Shearson Lehman Bros. to provide up to $355 million. Those commitments were conditioned on the group, which also will put up $100 million in equity, getting the $150 million in financing to be provided by Pickens.
Singer stock jumped $1.625 to close at $48.75 a share in New York Stock Exchange trading on Wednesday.
There has been widespread skepticism that Bilzerian could come up with the financing necessary to complete his tender offer for Singer, given his reputation as a speculator and the weak condition of the market for the high-yield junk bonds used to finance such takeovers.