Rlpc: Bankers prep 5 bln euros of leveraged loans for host of sales

Telekom Slovenije, D.d

28/08/2014 17:05

By Claire Ruckin 
    LONDON, Aug 28 (Reuters) - Bankers are preparing debt 
financings to back a number of potential sales that could 
provide a big boost to the leveraged finance market in the last 
quarter of 2014 and soak up some of the demand from cash rich 
investors hungry for event driven deals, banking sources said.  
    Bids are due on several sale processes in September and 
bankers are working on financings totalling around 5 billion 
euros (6.58 billion US dollar) for companies including Gala 
Coral's bingo division; Germany's largest private-sector chain 
of rehabilitation clinics Median Kliniken; Norwegian cable group 
Get; Slovenia telecom firm Telekom Slovenije  TLSG.LJ ; Swiss 
drink cartons maker SIG Combibloc Group; and Danish crop 
protection company Cheminova. 
    The companies were either not immediately available to 
comment or declined to comment.  
    "All of these companies should attract a lot of interest 
from potential buyers and debt investors - all eager to do deals 
and put money to work," a leveraged finance banker said.   
    Lazard is running the sale of Gala's 135 bingo clubs which 
is attracting interest from a number of potential buyers and 
final round bids are due September 15. With Ebitda of around 50 
million pounds (82.89 million US dollar), bankers are putting 
together all-senior leveraged loan financings of around 4.5 
times debt to earnings, totalling around 225 million pounds.  
    Bankers are also working on financings of up to around 600 
million euros or 6.5-7 times debt to earnings for Median, owned 
by buyout firm Advent International and British real estate 
investor Marcol. Debt is expected to be in the form of first and 
second lien loans. 
     
    CABLE DEAL 
    Get owners Quadrangle and GS Capital Partners had considered 
a sale of the company in 2012 but opted to conduct a dividend 
recapitalisation instead. The company is now up for sale with 
bids due shortly and bankers are considering senior loans, 
second lien loans and high yield bonds to back a deal.   
    About 2.8 billion euros of debt has been put together to 
back a potential sale of SIG Combibloc Group, while debt 
financings of up to 720 million euros to back a potential sale 
of Cheminova are also being prepared, with final bids for the 
business due September 4. 
    Broadcasting masts group TDF's French unit looks likely to 
be sold to Canadian pension fund PSP Investment, banking sources 
said.  
    Bankers are preparing around 1.5 billion euros to back PSP's 
bid or 4 times debt to earnings, in the form of an 
infrastructure, corporate style loan. Some bankers are 
disappointed the financing will not be in the form of leveraged 
loans, which would have totalled around 2.65 billion euros.  
 
 
(1 US dollar = 0.7598 euro) 
 
(1 US dollar = 0.6032 British pound) 
 
 (Editing by Christopher Mangham) 
 ((claire.ruckin@thomsonreuters.com; +44)(0)(207 542 1891; 
Reuters Messaging: 
claire.ruckin.thomsonreuters.com@reuters.net)) 
 
Keywords: AUCTIONS LOANS/