LONDON, May 31 (Reuters) - A US$2.2bn-equivalent debt financing backing the acquisition of publicly-listed Hong Kong-based international schools operator Nord Anglia Education is set to launch for syndication, banking sources said.
Nord Anglia said it would be taken private by Canada Pension Plan Investment Board and Baring Private Equity Asia on April 25, in a deal that values the company at US$4.3bn, including debt.
A bank meeting is expected to take place next week to show the deal to investors after a select group of investors were shown the deal last week, the source said.
The financing is expected to include US$1.6bn of secured debt split between a US$1.225bn euro-denominated term loan B, guided to pay 375bp over Euribor, and a US$375m pre-placed loan, the sources said.
There is also a US$416m pre-placed second-lien loan and around US$200m of undrawn facilities, the sources said.
Global coordinators Deutsche Bank and HSBC, alongside bookrunners Credit Suisse and Macquarie, are leading the financing, which will fund the acquisition and refinance some US$800m of existing debt.
Baring Private Equity Asia declined to comment. CPPIB and Nord Anglia were not immediately available to comment.
The financing equates to around 7.5 times Nord Anglia’s Ebitda, excluding US banks from committing to the deal that exceeds the 6.0 times debt-to-earnings ratio cap imposed on regulated banks that fall under the remit of the US leveraged lending guidelines. (Editing by Christopher Mangham)