Reuters – CVC’s Ista Buyout Backed by Loan, Bond Package

Reuters – A debt financing of more than 2 billion euros ($2.62 billion) backing the 3.1 billion euro ($4.06 billion) purchase of German metering firm Ista by private equity firm CVC will be a mix of leveraged loans and high-yield bonds, writes Reuters. CVC trumped rival BC Partners to buy a 76 percent stake from co-owner Charterhouse last week in Germany’s largest private equity deal since 2008, writes Reuters.

Reuters – A debt financing of more than 2 billion euros ($2.62 billion) backing the 3.1 billion euro ($4.06 billion) purchase of German metering firm Ista by private equity firm CVC will be a mix of leveraged loans and high-yield bonds, sources said on Friday.

CVC trumped rival BC Partners to buy a 76 percent stake from co-owner Charterhouse on Thursday in Germany’s largest private equity deal since 2008.

The senior debt will be split into loans and senior secured bonds and the junior debt will comprise senior unsecured bonds, the sources said.

The debt financing will have total leverage of around 7.25 times Earnings Before Interest, Tax, Depreciation and Amortisation (EBITDA), and senior leverage of around 5.5 times, they added.

CVC contributed around 1 billion euros ($1.31 billion)of equity to the deal, which reduced leverage on the debt to 7.25 times EBITDA, compared to leverage of 7.5 times on BC Partners’ financing.

CVC’s more conservative debt structure and slightly higher equity contribution is designed to ensure that Ista has a flexible capital structure which will allow management to invest in and grow the business, one of the sources said.

Deutsche Bank is in a lead position on the financing package, after providing a staple financing on the loan. Deutsche is expected to be joined by other banks on the financing package, which is still being finalised.

A mandate is expected early next week and the financing package will be launched shortly thereafter. ($1 = 0.7644 euros) (Reporting by Tessa Walsh)