Banks are preparing to sell down a £647 million (US$852 million) leveraged loan financing backing the acquisition of U.K.-based software company Civica Group by Swiss asset manager Partners Group, banking sources said.
Partners agreed to buy Civica from OMERS Private Equity in a deal that valued the company at around £1 billion, the firms said in July.
Deutsche Bank and Natixis are leading the all-sterling leveraged loan financing, alongside Credit Agricole, Natwest, SMBC and UniCredit, the sources said.
The financing is being shown to a select group of early-bird investors and is due to launch for general syndication towards the end of September, with a bank meeting planned for the week of September 25, the sources said.
The financing comprises a £450 million first-lien loan, a £97 million second-lien loan and a £100 million revolving credit facility, the sources said. Pricing on the first lien is expected somewhere between 400 basis points to 450 basis points over Libor, with a 0 percent floor, one of the sources added.
Partners declined to comment.
OMERS Private Equity, part of Canadian pension fund OMERS, acquired Civica in 2013 from 3i Group for £390 million, according to Thomson Reuters LPC data.
OMERS hired Goldman Sachs in November 2016 to explore a potential sale of Civica.
Civica provides a wide range of specialised software systems and technology-based outsourcing for clients in sectors including the government and national security, housing, healthcare, education and regulated markets, such as the police, local councils and law firms.
(Reporting by Claire Ruckin, editing by Christopher Mangham)
Photo courtesy of Civica Group