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Bilzerian Group Completes Its Financing for Singer Buyout

February 02, 1988|Associated Press

NEW YORK — A group led by investor Paul Bilzerian said Monday that it had executed definitive agreements for the financing it needed to complete its $1.06-billion buyout of Singer Co.

The group said Shearson Lehman Hutton and Mesa Limited Partnership agreed to provide a total of $505 million to finance its $50-a-share cash tender offer for Singer.

The group also said it planned to execute an agreement with NatWest USA for $540 million in margin debt.

In addition, the group said it had a commitment from the Bank of Nova Scotia and CreditAnstalt Bankverein for up to $450 million to replace certain existing Singer debt, if necessary, and cover the company's interim financing needs.

Completion of the merger had been delayed repeatedly because of problems in executing the final financing arrangements. Among other things, Bilzerian's group had to negotiate waivers of defaults that would have occurred under Singer's bank credit agreements upon a change in the company's management.

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