Goldman Sachs Group is preparing an updated $3.75 billion financing package to back Arclin’s planned purchase of DuPont de Nemours’ (DD) aramids unit, with the structure now expected to include a high-yield bond component, Bloomberg News reported Thursday, citing people familiar with the matter.
The proposed funding would consist of roughly $2.25 billion of leveraged loans denominated in dollars and euros, about $1 billion of privately placed junk bonds, and a $500 million revolving credit facility, the people said. Discussions with investors are under way, and the deal could be launched as early as this week.
Goldman had previously explored a different structure when it first tested market interest in September, centered on a $3 billion term loan, a $500 million revolver, and a $250 million delayed-draw facility.
Changes to the financing come after Arclin completed its acquisition of Willamette Valley Co., an adhesives manufacturer, and after its private equity sponsor, TJC LP, contributed additional equity toward the DuPont (DD) transaction. Proceeds from the debt package are also expected to be used to refinance existing term loans, though final terms remain subject to negotiation.
The shift toward bond financing reflects softer conditions in the US leveraged loan market, where recent selling pressure, particularly in software-related debt, has pushed a growing share of loans into distressed levels. A widely followed index of U.S. leveraged loans has recently fallen to a two-month low.
Banks have made similar adjustments elsewhere. Earlier this week, lenders reworked the financing for roughly $1.8 billion of debt tied to TreeHouse Foods Inc.’s acquisition by reducing the size of the loan tranche and relying more heavily on high-yield bonds.
Arclin agreed in August to buy DuPont’s (DD) aramids business for approximately $1.8 billion. The unit produces high-strength fibers used in applications such as body armor and fire-resistant apparel, and the transaction is expected to close in the first quarter of 2026.
Arclin most recently accessed the leveraged loan market in May 2024, when it raised $340 million in additional debt. DuPont (DD) has been divesting assets as part of a broader corporate reorganization announced last year.