September 11, 2017 / 12:16 PM / a year ago

LPC-Banks to sell £647m loan backing Civica buyout

LONDON, Sept 11 (Reuters) - Banks are preparing to sell down a £647m leveraged loan financing backing the acquisition of UK-based software firm Civica by Swiss asset manager Partners Group, banking sources said.

Partners agreed to buy Civica from OMERS Private Equity in a deal that valued the UK-based software firm at around £1bn, the companies said in July.

Deutsche Bank and Natixis are leading the all-sterling leveraged loan financing, alongside Credit Agricole, Natwest, SMBC and UniCredit, the sources said.

The financing is being shown to a select group of early bird investors and is due to launch for general syndication towards the end of September, with a bank meeting planned for the week of September 25, the sources said.

The financing comprises a £450m first-lien loan, a £97m second-lien loan and a £100m revolving credit facility, the sources said.

Pricing on the first lien is expected somewhere between 400bp-450bp over Libor, with a 0% floor, one of the sources added.

Partners declined to comment.

OMERS Private Equity, part of Canadian pension fund OMERS, acquired Civica in 2013 from 3i for £390m, according to Thomson Reuters LPC data.

OMERS hired Goldman Sachs in November 2016 to explore a potential sale of Civica Group.

Civica provides a wide range of specialised software systems and technology-based outsourcing for clients in sectors including the government and national security, housing, healthcare, education and regulated markets such as the police, local councils and law firms. (Editing by Christopher Mangham)

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