Goldman Sachs is preparing a $3.75bn financing package to support Arclin’s acquisition of DuPont’s aramids business, highlighting shifting dynamics in leveraged finance markets, according to Bloomberg sources.

The debt would comprise about $2.25bn of leveraged loans, $1bn of privately placed high-yield bonds, and a $500m revolving credit facility. The revised structure follows weaker conditions in the US loan market, which have pushed banks to rely more on bond financing.

Arclin agreed to acquire the aramids unit for about $1.8bn. The business produces high-strength fibres used in protective equipment such as body armour and fire-resistant clothing. The transaction is expected to close in the first quarter of 2026.

TJC, Arclin’s private equity owner, has injected additional equity into the deal and recently completed the acquisition of adhesive maker Willamette Valley Co. The financing will also refinance parts of Arclin’s existing debt.

The deal illustrates how private equity-backed transactions are adapting financing structures as loan market volatility persists, with sponsors and banks increasingly blending loans and bonds to complete large carve-outs.

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