LONDON, May 18 (Reuters) - Private equity firm Apax Partners’ buyout of Safetykleen Europe will be backed with around £550m of leveraged loans, banking sources said on Thursday.
Apax announced on Thursday it had agreed to acquire Safetykleen Europe, the largest provider of surface treatment and chemical application services, from Warburg Pincus.
The roster of banks underwriting the buyout financing is being firmed up and syndication is set to launch within the next few weeks, the sources said.
The financing will be denominated in euros and comprise a senior secured term loan B, a second-lien loan and undrawn facilities. The second-lien could be preplaced, the sources said.
Some £550m of loans equates to leverage in the high 6s, based on an approximate Ebitda of £70m, the sources said.
Apax declined to comment.
Established in 1973, Safetykleen Europe is headquartered in London and operates in 14 countries, principally in Europe, as well as Brazil, China and Turkey. It employs over 1,600 people. (Editing by Christopher Mangham)