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LONDON, March 30 (Reuters) - Bankers are working on debt packages of around €1.2bn to back a potential sale of Dutch car park operator Q-Park, banking sources said on Thursday.
Q-Park is owned by a group of shareholders consisting mainly of institutional investors, including pension funds and insurance companies, most of which are Dutch. The company has been put up for sale and has a price tag of around €2bn, banking sources said.
Around five bidders are through to the second round of bidding due at the end of April, including private equity firm KKR, Australian investment bank Macquarie and Chinese bidders, the sources said.
Q-Park, KKR and Macquarie were not immediately available to comment.
Banks are working on different financing packages to suit the different buyers, varying in structure and leverage.
Typically infrastructure deals can be financed with higher leverage and will pay lower yields, compared to private equity deals which offer slightly lower leverage and pay higher yields.
Some €1.2bn of debt financing equates to around 6.5 times Q-Park's approximate €185m Ebitda, the sources said.
Q-Park is expected to be rated Double B.
Q-Park tapped Europe’s leveraged loan market in 2015 and signed a €925m credit facility to replace a €1.15bn loan that was due to mature in 2016, according to Thomson Reuters LPC data.
That financing, which had a potential final maturity of seven-years subject to extension options, was provided by five banks coordinated by ABN AMRO. The other lenders were Rabobank, ING Bank, KBC Bank and HSBC.
Editing by Christopher Mangham