June 21, 2017 / 10:21 AM / 2 months ago

LPC-Banks line up €250m loan to back Etraveli buyout

LONDON, June 21 (Reuters) - Banks have lined up around €250m of debt financing to back private equity firm CVC’s acquisition of Sweden-based online travel agency Etraveli, banking sources said.

CVC agreed to acquire the business, which operates with brands Gotogate, Supersaver and Seat24, from German broadcaster ProSiebenSat.1 for €508m, it said in a statement on Tuesday.

Credit Suisse, Jefferies and UBS are leading the debt financing, which will be in the form of senior leveraged loans, the sources said.

CVC was not immediately available to comment on the financing.

The term loan is set to be syndicated to institutional investors, although it is not clear whether the process will launch before or after the summer, the sources said.

Any deals that banks underwrite from now will be subject to debate on whether they should launch for syndication during the summer period and risk a more limited audience or be held on banks’ balance sheets to launch post summer, at the expense and risk to banks unclear of future market conditions.

ProSieben had announced in February that it was looking into its travel business, which includes Internet portals such as event agency mydays and travel booking site weg.de and accounts for more than a third of digital revenues at the company.

It aims to use proceeds from the sale of Etraveli to fund further growth, make bolt-on acquisitions in the Digital Entertainment and Commerce business and acquire minority stakes in companies already in its portfolio.

Editing by Christopher Mangham

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