According to sources, Goldman Sachs is structuring a $3.75 billion financing package to support Arclin's acquisition of DuPont's aramids business. The financing comprises $2.25 billion in leveraged loans, $1 billion in privately placed high-yield bonds, and a $500 million revolving credit facility. This shift reflects the current volatility in the leveraged finance market, prompting a greater reliance on bond financing.

Arclin, backed by private equity firm TJC, agreed to acquire the aramids unit for approximately $1.8 billion. The unit specializes in producing high-strength fibers used in protective gear. The deal's structure, blending loans and bonds, showcases how private equity firms are adapting to volatile market conditions, especially with the US loan market's recent weakness. The transaction is slated to close in Q1 2026.

The financing will also be used to refinance parts of Arclin's existing debt. This transaction underscores the evolving strategies in private equity-backed deals. As the loan market faces challenges, firms are increasingly combining loans and bonds to complete large carve-outs and secure funding for acquisitions, especially in the current economic climate.