May 8, 2019 / 3:27 PM / 2 months ago

Banks to launch €1.75bn loan backing Evonik unit buyout

LONDON, May 8 (LPC) - Banks are set to launch a €1.75bn leveraged loan financing to back private equity firm Advent’s acquisition of German chemicals group Evonik’s methacrylates plastics unit, banking sources said.

A €1.49bn term loan B is expected to launch for syndication to institutional investors within two weeks, after being pre-marketed to a select group of investors over the past couple of weeks, the sources said.

Barclays, Deutsche Bank and Goldman Sachs are leading the underwritten financing, alongside Bank of America Merrill Lynch, Bank of China, HSBC, NatWest Markets and Royal Bank of Canada.

The loan is set to be welcomed by Europe’s cash-rich investors base, which has been starved of product so far this year after volumes plummeted to a 10-year low, according to LPC data.

The financing also includes a €260m revolving credit facility.

Evonik agreed the sale of its clear acrylic sheet unit for €3bn, it announced on March 4, comfortably more than the €2bn-€2.5bn that had been expected.

The Methacrylates business has 18 production sites and 3,900 employees worldwide. From 2016 to 2018, the business generated an average annual Ebitda of about €350m and sales of about €1.8bn. For 2019, Evonik expects sales and Ebitda at a similar level. (Editing by Christopher Mangham)

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