April 3, 2017 / 4:19 PM / 4 months ago

LPC-CVC’s CLH buy backed with €560m loan

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LONDON, April 3 (Reuters) - A €560m loan will back the acquisition of a 25% stake in Spanish oil transportation and storage company CLH by CVC Capital Partners’ Strategic Opportunities Platform, banking sources said.

CVC announced on Monday it was acquiring a 10% stake from Ardian as well as a 5% stake from each of Kutxabank, Abanca and clients of Alberta Investment Management Corp.

Natixis was the sole arranger and underwriter of the acquisition financing, the announcement said.

The €560m term loan will have a five-year maturity and is expected to pay an interest margin of 250bp over Euribor, the sources said.

Some of the loan could be sold down to other banks and funds, with Spanish banks expected to take a share of the debt, the sources said.

CVC was not immediately available to comment on the loan.

CLH raised a €320m loan in February 2016, to back Borealis Infrastructure’s 24.15% acquisition of a stake in the company.

That loan comprised of a €120m term loan A and a €200m term loan B, both maturing in 2021, provided by Abanca, Banco Santander, Export Development Canada and Natixis, according to Thomson Reuters LPC data.

CLH is CVC’s 15th major investment in Spain in the last 20 years. CLH is the fourth investment made from CVC’s Strategic Opportunities Platform, which was established in response to growing demand from large investors to be able to invest in long term, stable, high-quality businesses.

CLH has over 4,000 kilometres of oil pipeline and a storage capacity of more than 8 million cubic metres in Spain, which is available to all oil operators that do business in the country. The Company also owns the largest oil pipeline network in the UK. (Editing by Alasdair Reilly)

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