Investment banks and direct lenders are working on debt packages of up to €1.5 billion ($1.6 billion) to back a potential take-private of Spain’s Applus Services SA, according to people familiar with the matter.
(Bloomberg) — Investment banks and direct lenders are working on debt packages of up to €1.5 billion ($1.6 billion) to back a potential take-private of Spain’s Applus Services SA, according to people familiar with the matter.
Bankers are vying with private credit firms over the financing of a potential takeover, the people said, who asked not to named as the talks are private. The company is attracting interest from I Squared Capital LLC and TDR Capital LLP, according to a regulatory filing. Private equity firms Apax Partners LLP and Apollo Global Management Inc. have also shown interest, according to people familiar.
Apollo, Apax and TDR Capital declined to comment. I Squared Capital didn’t respond to an email request for comment.
A lack of new dealflow this year — and the consequent loss of the rich fees on offer in M&A financing — means that banks and private credit firms are particularly eager to fund the potential acquisition.
The debt packages under consideration vary between the different banks and direct lenders but are mainly between €1 billion to €1.5 billion of senior debt, the people said, equating to 3 to 4.5 times leverage based on Applus’ approximate Ebitda of €325 million.
Direct lenders recently won out over their banking counterparts in supplying the debt to back EQT AB’s acquisition of Dechra Pharmaceuticals Plc, among the biggest European take-privates of the year.
Read more: Direct Lenders Are Muscling In on Banks’ Take-Private Deals
–With assistance from Katherine Griffiths, Jan-Henrik Förster and Dinesh Nair.
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