(Reuters) — Hong Kong-based Baring Private Equity Asia’s acquisition of a majority stake in trust and custodial services provider Vistra Group will be backed with a $700 million cross border leveraged loan financing, banking sources said on Tuesday.
Baring agreed to buy a majority stake in Vistra in May from IK Investment Partners, for an undisclosed sum, with management holding a significant stake.
Goldman Sachs is leading the financing, alongside Credit Suisse, Jefferies and DBS Bank. Bank meetings are scheduled to take place in London on July 8 and New York on July 9 to show the deal to investors, the sources said.
The loan market has been caught in the volatility brought by the Eurozone crisis, with a number of repricings withdrawn in recent weeks. However, loan investors say they still have appetite for strong credits and for event-driven financings, so long as they are launched at the right pricing and terms.
The Vistra financing comprises a $515 million first-lien loan and a $185 million second-lien loan, both denominated in euros and dollars, with the exact split still to be determined.
There is also a revolving credit facility. Pricing will emerge at the bank meetings, the sources said.
Baring declined to comment.
Vistra Group employs over 1,300 employees in 46 offices across 35 jurisdictions. (Editing by Christopher Mangham)