Investcorp to Boost Funding with Bond Offer –

Global private equity firm Investcorp International has launched a euro 200 million ($207 million) bond through the European medium-term note program in order to supplement its traditional fund raising avenues-private placements and syndicated bank loans.

It is the first time the Bahrain-based firm has issued publicly traded bonds that will be used for general corporate purposes to support its own balance sheet requirements.

Trying to Diversify Capital Streams

“This funding program marks an important step in the development of Investcorp as a leading global investment group,” said Investcorp Chief Financial Officer Gary Long. “The medium-term note program diversifies the sources of our long-term funding and lengthens the average maturity of our debt. We have been extremely encouraged by the market’s response to this issue.”

The issue has a maturity of seven years, an annual coupon of 5.75 percent and was priced to yield 185 basis points over the German government bond curve. It was jointly lead managed by Warburg Dillon Read and Deutsche Bank.

“The issue comes on the back of an extensive series of investor meetings that have allowed Investcorp to unveil demand from high quality accounts throughout Europe,” said Ralph Berlowitz, head of bond syndication at Deutsche Bank in Frankfurt. “Investcorp is a very interesting credit story to bring to the market.”

Investcorp has completed more than 70 transactions with a total value of over $13.5 billion. It currently has 19 portfolio companies including Zeneca Specialty Chemicals and Leica Geosystems.