Jan. 7 (Bloomberg) -- Ameriforge Group Inc., a maker of forged products for the oil and gas industry, is seeking $500 million of loans to back its buyout by First Reserve Corp., according to a person with knowledge of the transaction.
The financing will include a $350 million first-lien term loan and a $150 million second-lien term loan, said the person, who asked not to be identified because the information is private.
Deutsche Bank AG is arranging the financing and will host a lender meeting tomorrow afternoon, according to the person.
First Reserve, the private-equity firm that has raised $23.1 billion of capital since it was founded 29 years ago, is acquiring the Houston-based company from Post Oak Companies LP for an undisclosed amount, according to a Nov. 27 statement.
Caroline Harris, a spokeswoman for First Reserve, didn’t immediately respond to an e-mail seeking comment.
First-lien debt is repaid first in a bankruptcy or liquidation, second-lien borrowings are repaid next.
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