November 7, 2016 / 3:23 PM / a year ago

LPC-Financing details emerge on Allegro buyout loan

LONDON, Nov 7 (Reuters) - A Z4.8bn (US$1.22bn) debt financing will back Cinven, Permira and Mid Europa’s US$3.25bn acquisition of Polish e-commerce businesses Allegro and Ceneo, banking sources said on Monday.

Cinven, Permira and Mid Europa announced on October 14 they had agreed to buy Allegro and Ceneo from South Africa’s Naspers .

The financing is split between a Z3.5bn senior secured loan and a Z1.3bn junior unsecured tranche.

The senior secured loan is out to relationship banks, with general syndication expected next week, when pricing details are likely to emerge, the sources said.

“The deal is getting a lot of interest from both local and international banks,” one of the sources said.

The unsecured junior tranche, which equates to around 300m, will either be a euro-denominated high-yield bond or a dual-denominated euro/zloty second-lien loan. A bond has been underwritten as part of the financing, but there is demand for a second lien-loan, the sources said.

Goldman Sachs and Societe Generale lead the financing, joined by Bank of America Merrill Lynch, BNP Paribas, Credit Agricole, Deutsche Bank, ING, HSBC and UniCredit.

Cinven declined to comment. Permira and Mid-Europa were not immediately available to comment. ($1 = 3.9277 zlotys) (Editing by Christopher Mangham)

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