Five banks arrange loan for Expro buyout

LONDON (Reuters) - Five banks are arranging the financing backing the 1.605 billion pound buyout of oil services firm Expro International EXR.L by funds managed by private equity firms Candover (CDI.L), Alpinvest and Goldman Sachs (GS.N), a spokesman for the buyers said on Thursday.

DnB NOR, HSBC, Lloyds TSB, Royal Bank of Canada and Royal Bank of Scotland are arranging a loan of under 1 billion pounds for the buyout.

The loan will be one of the few large leveraged loans to hit the European market this year as the knock-on effects from the global liquidity crisis continue to cripple the market.

No further details on the loan were available.

Earlier on Thursday, Expro management said it would recommend the 1,435 pence per share bid from the funds' bidding vehicle Umbrellastream to shareholders.

"Umbrellastream's cash offer provides Expro shareholders with certain value today and fairly reflects both the value that has been created during this period and the future potential of the group," Chris Fay, Chairman of Expro, said.

Expro shares closed at 1,322 pence on Wednesday.

The company said in February it had received a takeover approach, boosting its shares almost 40 percent.

Oil and gas industry services providers such as Expro have benefited as record oil prices prompt energy companies to boost spending on exploration and development of reserves.

(Reporting by Zaida Espana; Editing by Erica Billingham)