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LONDON, May 2 (Reuters) - Details of a €3.175bn debt financing backing the buyout of German drugmaker Stada have emerged, according to documents.
Private equity firms Bain Capital and Cinven won an auction for Stada last month after substantially increasing a previous bid to about €5.3bn. Stada said that the buyers would fund about half of the deal with €2.6bn in equity and the rest with debt.
It is the largest leveraged financing so far this year and gives investors the new buyout deal they have been calling for amid a relentless round of repricing and refinancing.
The financing is expected to comprise a €1.95bn seven-year senior secure term loan B facility; €485m of seven-year senior secured fixed rate bonds; €340m of eight-year senior unsecured fixed rate notes; and a €400m seven-year revolving credit facility.
The split could alter depending on demand as Stada has decided to tap the three different pools of euro liquidity to secure the most attractive terms, banking sources said.
Barclays, Citigroup, Commerzbank, Jefferies, JP Morgan, Nomura, Societe Generale and UBS have underwritten the financing and a further one or two banks are expected to join the deal, which is set to launch for syndication to investors in June, the banking sources said.
Barclays, Nomura and UBS are leading the TLB financing, Citi is leading the secured bond and JP Morgan is leading the unsecured bond, the sources added.
Bain and Cinven had been vying with a rival consortium consisting of Advent and Permira for control of Stada. Both suitors previously bid €4.7bn including debt. (Editing by Christopher Mangham)