Jan 16 (Reuters) — Three banks have lined up a loan financing totaling around 275m to back the buyout of German payment group Concardis by private equity firms Advent and Bain Capital, banking sources said on Monday.
Advent and Bain Capital agreed to buy Concardis from a group of private, savings and cooperative banks, the parties said in a joint statement on Friday, not disclosing a purchase price.
Goldman Sachs, HSBC and Morgan Stanley are leading the underwritten financing to back to the acquisition, which is expected to launch for syndication to institutional investors in February, the sources said.
The financing will be in the form of an all-senior leveraged loan and will equate to around five times Concardis’ approximate 55m Ebitda, the sources said.
Advent and Bain declined to comment.
The loan is likely to be welcomed by Europe’s liquid leveraged loan market, eager for new paper from event-driven financings.
Concardis offers card-payment terminals as well as payment technology for e-commerce groups and is viewed as a non-core business by its key owners.
Prior to a sale, Deutsche Bank had 16% of Concardis, DZ Bank 19% on behalf of its cooperative bank members and German savings banks had a total of 39%. Commerzbank and Unicredit held smaller stakes. (Editing by Christopher Mangham)