LONDON May 2 Details of a €3.175bn debt
financing backing the buyout of German drugmaker Stada
have emerged, according to documents.
Private equity firms Bain Capital and Cinven won an auction
for Stada last month after substantially increasing a previous
bid to about €5.3bn. Stada said that the buyers would fund about
half of the deal with €2.6bn in equity and the rest with debt.
It is the largest leveraged financing so far this year and
gives investors the new buyout deal they have been calling for
amid a relentless round of repricing and refinancing.
The financing is expected to comprise a €1.95bn seven-year
senior secure term loan B facility; €485m of seven-year senior
secured fixed rate bonds; €340m of eight-year senior unsecured
fixed rate notes; and a €400m seven-year revolving credit
The split could alter depending on demand as Stada has
decided to tap the three different pools of euro liquidity to
secure the most attractive terms, banking sources said.
Barclays, Citigroup, Commerzbank, Jefferies, JP Morgan,
Nomura, Societe Generale and UBS have underwritten the financing
and a further one or two banks are expected to join the deal,
which is set to launch for syndication to investors in June, the
banking sources said.
Barclays, Nomura and UBS are leading the TLB financing, Citi
is leading the secured bond and JP Morgan is leading the
unsecured bond, the sources added.
Bain and Cinven had been vying with a rival consortium
consisting of Advent and Permira for control of Stada. Both
suitors previously bid €4.7bn including debt.
(Editing by Christopher Mangham)