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LONDON, June 5 (Reuters) - Bankers have lined up around €570m-equivalent of debt financing to back private equity firm Advent International’s acquisition of Danish packaging group Faerch Plast, banking sources said.
Swedish buyout firm EQT said on Friday it would sell Faerch Plast to Advent following a competition auction process, after Credit Suisse and investment banking boutique FIH Partners were hired on the sale earlier in the year.
The buyout will be backed with a leveraged loan financing, part of which will be syndicated to investors in the coming weeks, the sources said.
Barclays, BNP Paribas, Credit Suisse, Danske, Natwest, RBC and UBS are expected to lead the financing, the sources said.
The financing comprises a senior leveraged loan, split between euros and a preplaced sterling portion, as well as a pre-placed second-lien loan, the sources said.
Some €570m of loans, including undrawn facilities, equates to around 6.5 times Faerch’s approximate €80m Ebitda, the sources said.
Advent declined to comment.
Founded in 1969, the company has production sites in Denmark, the UK, the Czech Republic and Spain and employs 1,100 staff. It makes rigid plastic trays primarily for food producers and retailers.
Editing by Christopher Mangham