NationsBank Corp. is providing $600 million in financing for Pillowtex Corp.'s $700 million cash and stock acquisition of Fieldcrest Cannon Inc.
NationsBank of Texas is leading a $600 million credit facility for Pillowtex, a NationsBank executive said last week. It will include a $350 million revolver and a $250 million term loan.
Dallas-based Pillowtex, which owns manufacturing, purchasing, and distribution facilities throughout the United States and Canada, announced plans Thursday to acquire Fieldcrest, a Kannapolis, N.C.-based manufacturer of sheets and towels.
Pillowtex plans to place a $65 million convertible preferred-stock investment through affiliates of Apollo Management LP, the investment firm founded by Leon D. Black.
Bear, Stearns & Co. advised Pillowtex on the transaction and helped bring in Apollo, whose principals are familiar with the textile industry, to increase the equity base of the acquiring company.
The acquisition is expected to close in late November or early December.
Standard & Poor's Corp. has given Pillowtex a BB credit rating.
NationsBank and its predecessor banks have a relationship with Pillowtex that spans 40 years.
