BCA owner CD&R set for dividend payout-Reuters

(Reuters) – The UK’s largest seller of second-hand vehicles British Car Auctions (BCA) is seeking to raise a minimum 148 million pounds (232.30 million US dollar) of new loans to refinance debt and pay a dividend to owners after pulling a planned stock market listing, banking sources said on Friday.

Clayton, Dubilier & Rice (CD&R) acquired BCA in 2010 from Montagu Private Equity in a deal backed with 217 million pounds of loans. It raised an additional 181 million pounds of new money in 2013 to reduce the size of expensive payment-in-kind (PIK) notes and partly pay for the acquisition of We Buy Any Car, according to Thomson Reuters LPC.

HSBC is leading the latest refinancing on a standalone basis. The deal will also include a new second lien tranche. The loans will be used to fully repay the outstanding PIK notes and pay a dividend to CD&R, the banking sources said.

The new money raising will comprise a 113 million pound term loan B, denominated in euros and sterling, and a 35 million pound incremental revolving credit facility. After the transaction, BCA’s senior secured loan facilities will total 485 million pounds, the sources said.

A bank meeting is due to take place on December 2 in London to show the deal to investors, when more details including the size of the second lien and pricing of the new loans will emerge. Existing investors will be asked to consent to the deal as well as contribute fresh capital, they added.

BCA was planning a stock market listing but pulled it in October amid volatile macro conditions. Established more than 60 years ago, BCA operates in 13 countries and sells around 1 million vehicles a year, according to its website.