By Carol Dean and Ainsley Thomson Of Dow Jones Newswires LONDON (Dow Jones)--TPG Inc. and Goldman Sachs Group Inc. (GS) are financing their buyout of Belgium-based nappy producer Ontex with a EUR650 million loan financing that was launched into syndication yesterday, said one person familiar with the situation Thursday. Ontex was acquired from private equity firm Candover Investments earlier this month in a deal worth around EUR1.2 billion. Bank of America Merrill Lynch and Goldman Sachs have underwritten the financing, the person said. The debt is divided between a EUR125 million six-year term loan A priced at 450 basis points over Euribor and a EUR475 million seven-year term loan B priced at 500 basis points over Euribor. There is a Euribor floor of 1.75%. In addition, there is a EUR50 million revolving credit facility, the person said. "There has been a significant amount of reverse enquiry," in the deal, the person said, reflecting interest in participating in the financing. Ontex makes wet-wipes and feminine products as well as nappies, primarily for retailers' own brands. It reported earnings before interest, taxes, depreciation and amortization, or Ebitda, for 2009 of EUR150.3 million, compared with EUR94.8 million the previous year. TPG and Goldman Sachs plan to expand the company across Europe, Algeria and China. By Carol Dean, Dow Jones Newswires; 44 20 7842 9306; carol.dean@dowjones.com (END) Dow Jones Newswires July 29, 2010 10:49 ET (14:49 GMT)