LONDON Feb 8 Bankers are working on debt
financings of around €1bn to back a potential sale of Swiss
chemicals company Archroma, banking sources said on Wednesday.
Buyout group SK Capital put Archroma up for sale earlier
this year, hiring Evercore and HSBC to find a buyer for the
company, which could fetch around SFr1.5bn (US$1.51bn).
The company is due to attract both corporate and sponsors
buyers and first round bids were due last week, one of the
HSBC has offered a staple financing to back a potential
sale, equating to around 5.75 times Archroma’s approximate €180m
Ebitda. The debt is expected to be offered in the form of
leveraged loans, denominated in euros and dollars.
Other banks are also pitching financings to potential
buyers, aiming to beat the staple financing and win a place on
SK Capital was not immediately available to comment.
Bankers are eager to fund the buyout, attracted to
committing a large underwritten, event driven financing as an
alternative to the flood of lower paid and less lucrative
repricings and refinancings so far this year.
“It is a chemicals business, so it is in a sector that can
be quite cyclical and capital intensive. Having said that, it
seems like it will be a nice-sized transatlantic deal for a good
company and one a lot of banks will be looking at,” one of the
Archroma was formed when SK Capital acquired Swiss
Clariant’s textile, paper and emulsions business in September
It last tapped the loan market in November 2016, when it
raised a US$200m-equivalent add-on loan to fund a dividend
payment, while at the same time repricing its existing loans on
more attractive terms and extending maturities.
Prior to that it accessed the loan market in July 2015 when
it agreed loans totalling US$515m-equivalent, to refinance debt
and support the acquisition of BASF’s textile chemical business.
($1 = 0.9943 Swiss francs)
(Editing by Christopher Mangham)