August 5, 2013 / 3:28 PM / 4 years ago

UPDATE 1-Bankers prep debt financing for EWOS acquisition

(Adds debt size, composition)

By Robert Smith and Claire Ruckin

LONDON, Aug 5 (IFR) - The debt financing of Bain Capital and Altor’s acquisition of fish feed business EWOS is likely to emerge after the summer break, having been underwritten by Deutsche Bank, Danske Bank and Swedbank, according to two sources close to the deal.

Altor and Bain emerged as the successful bidders for the business last month, reportedly beating Permira in the final round, according to Reuters.

EWOS is being spun out of Norwegian fish farmer Cermaq for an enterprise value of NOK6.5bn (USD1.08bn). Cermaq is a listed company, in which the Norwegian state is the principal shareholder through a 59% stake.

The debt backing the acquisition will be NOK3.56bn-equivalent (USD600m) in size, and will consist mainly of high yield bonds, according to a banker on the deal.

The debt will launch after the August break, and possibly as soon as September, according to one of the sources. The transaction is scheduled to close by the end of October 2013.

Although Cermaq is divesting its entire stake in EWOS, Cermaq’s farming business Mainstream will enter into a six-year feed agreement with EWOS on market terms. This contract includes exclusive deliveries from EWOS for the first two years.

EWOS generated NOK870.6m of Ebitda in 2012, up from NOK787.6m the previous year. Its first quarter Ebitda in 2013 was NOK79.5m, down from NOK100.7m in Q1 2012.

Carnegie is Bain and Altor’s financial adviser, with Kirkland & Ellis and Thommesen the legal advisers. Cermaq’s financial adviser is ABG Sundal Collier with Schjødt as legal adviser. (Reporting by Robert Smith and Claire Ruckin, Editing by Natalie Harrison, Julian Baker)

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