| LONDON, April 27
LONDON, April 27 Bankers are lining up around
£500m of debt to back a potential sale of Safetykleen Europe as
five buyout firms make it through to the final round of bidding
for the company that provides used oil collection, recycling and
parts cleaning services, banking sources said.
Warburg Pincus acquired Safetykleen in 2008 for £565m and
hired Goldman Sachs earlier this year on a sale process that
could see the company fetch around £640m.
Some £500m of debt financing to back a potential buyer’s bid
would equate to around 6.5 times Safetykleen’s approximate £80m
Ebitda, the sources said.
Bankers said senior and second-lien leveraged loans
denominated in stelring and euros were the most likely form of
Apax, Ardian, HgCapital, Montagu and Onex have all made it
through to the second round of bidding, which is due to take
place on May 24, the sources said.
Apax and Ardian declined to comment, while the rest of the
bidders and Warburg Pincus were not immediately available to
The auction process comes at the same time as a number of
other sales taking place in Europe as the pipeline for new deals
Bankers and cash-rich investors to Europe’s leveraged loan
market are eagerly waiting to fund these buyout deals, after a
lack of event driven financings so far this year.
Safetykleen Europe has 1,500 staff working in 70 locations
in Europe, Turkey, Brasil, China and Hong Kong.
(Editing by Christopher Mangham)