Israeli furniture maker Keter Group’s acquisition of Italian plastic furniture manufacturer ABM Italia will be backed with a €300 million (US$322 million) leveraged loan, banking sources said on Tuesday.
Keter Group, bought by U.K. private equity firm BC Partners and Canadian pension fund manager PSP Investments earlier this year, agreed to acquire ABM Italia, it was announced on Tuesday. The deal was valued at €400 million, sources said.
BNP Paribas, RBC and UBS are leading the loan financing, which is expected to launch to general syndication to institutional investors in January, the sources said.
The loan will be an add-on to Keter’s existing €690 million term loan, raised in October to back its buyout.
That term loan, which was part of a wider €790 million financing, pays 425bp over Euribor with a 1 percent Euribor floor. It allocated onto the secondary markets at 99.5 and has 101 soft call protection for six months. UBS, JP Morgan, Nomura, RBC and Bank of America Merrill Lynch led the deal.
Keter produces a wide range of consumer goods, including indoor and outdoor furniture, home accessories and hardware products.
BC Partners declined to comment and PSP Investments was not immediately available to comment.
By Claire Ruckin (London)
(Editing by Christopher Mangham)
Photo courtesy of Keter Plastic Ltd