CVC Capital Partners is arranging with a 300 million euro ($430.5 million) loan to fund its buyout of Raet, the biggest Dutch provider of payroll and human resources software, Reuters reported Friday. CVC has tasked mandated ABN AMRO, BNP Paribas, ING, Lloyds and Rabobank to arrange the debt. CVC is buying Raet from Taros Capital and Advent International. The purchase price, though not released, is reportedly just south of 400 million euros.
(Reuters) – Private equity firm CVC Capital Partners’ buyout of Raet, the biggest Dutch provider of payroll and human resources software, is backed with a 300 million euro ($430.5 million) loan, sources close to the deal said on Friday.
CVC has mandated ABN AMRO, BNP Paribas, ING, Lloyds and Rabobank to arrange the debt for the buyout, from Dutch buyout firm Taros Capital and global private equity firm Advent International.
The loan consists of around 250 million euros of senior debt, split between a term loan A and term loan B paying approximately 400 basis points (bps) and 475 bps over Euribor respectively, the sources said.
The remaining 50 million euros is split between a rolling credit and capital expenditure facility paying a margin of 400 bps over Euribor.
The deal has gone to an initial group of potential investors but could be sold more widely in general syndication next month, sources added.
A bank meeting is being fixed for early September.
The deal was announced this month and comes despite CVC dropping out of an initial bidding process earlier this year after it baulked at the 400 million euro price tag. At the time, Montague private Equity was also interested, but was also put off by the price.
The purchase price, which was not disclosed, is just lower than the 400 million euros previously asked for, sources close to the deal said.
Raet had a turnover of 132 million euros in the 12 months through June 2011 and has approximately 12,500 clients.
AlpInvest and Advent bought Raet, formerly known as Getronics Human Resources Solutions, in 2003 for 315 million euros. The buyout was backed by a 195 million euro loan package, arranged by ING Bank and NIB Capital. In 2007, NIBC arranged a 267 million euro recapitalization for the business. ($1 = 0.697 Euros) (Editing by David Holmes)