LONDON Oct 10 Bankers are preparing around
1.4bn of debt financing to back a potential sale of German
bandage and plaster cast maker BSN medical, banking sources said
Swedish buyout firm EQT, which acquired 69 percent of BSN
medical in 2012 for 1.8bn, hired JP Morgan earlier in the year
to handle the sale, in a deal expected to be worth more than
First round bids are due in the coming days, with final
round bids expected five to six weeks later, the banking sources
EQT declined to comment and BSN medical was not immediately
available to comment.
The sale is attracting a lot of interest from private equity
firms and banks are preparing debt financings comprised of
leveraged loans and high yield bonds to back potential bids. The
financings could tap both the European and US leveraged markets,
the sources said.
Some 1.4bn of debt would represent a multiple of around 7.0
times BSN medical's approximate 200m Ebitda, the sources said.
Bankers are eager to underwrite the deal following a lack of
event driven financings in 2016.
Hamburg-based BSN Medical was set up in 2001 as a joint
venture between Germany's Beiersdorf AG and Britain's Smith &
Nephew, as the two companies decided to combine operations in
wound care, fracture management, physiotherapy and compression
EQT's buyout was backed with 865m of loans, split between
391.5m of mezzanine debt and 473.5m of senior loans,
denominated in euros and dollars. The loans were repriced twice
in October 2012 and August 2013, when the company raised an
additional 40m. In May 2015, BSN raised a 380m term loan to
pay down the more expensive mezzanine debt, according to Thomson
Reuters LPC data.
(Editing by Christopher Mangham)