Deutsche and BoAML finance Steinway buyout
NEW YORK (Reuters) - Paulson & Co. has secured committed financing from Bank of America Merrill Lynch and Deutsche Bank to back the investment firm's buyout of Steinway Musical Instruments LVB.N, a company filing said.
The acquisition will be funded with the new debt financing and an equity contribution from Paulson.
Steinway, best known for its grand pianos, announced an agreement to be purchased by Paulson for $40.00 per share on August 14 in a deal valued at approximately $512 million. The buyout is expected to close in late September.
Steinway previously announced its acquisition by an affiliate of Kohlberg & Company on July 1 for $35 per share, in a transaction valued at approximately $438 million.
Steinway has terminated this agreement and paid KKR a $6.7 million termination fee.
Steinway Musical, through its operating subsidiaries, designs, manufactures and markets musical instruments.
(Editing by Tessa Walsh)
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