Go Scale to Raise $1.9B in Debt to Purchase Philips Components

Go Scale, the investment fund that is purchasing Philips’ lighting components unit Lumileds, said on Wednesday it would fund the acquisition in part by raising $1.93 billion (1.77 billion euros) in debt. The fund said in a statement that the Bank of China was acting as sole bookrunner in arranging the debt financing, which will have both euro and dollar denominated tranches.

A Philips spokesman confirmed the details of the financing plan released by Go Scale, which agreed in March to buy an 80.1 percent stake in the unit at a $3.3 billion valuation.

Philips spokesman Steve Klink reiterated that Philips expected to receive $2.8 billion for its stake, with the deal closing sometime in the third quarter.

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27 May