LONDON, Nov 15 (Reuters) - Pricing has emerged on a €2.95bn-equivalent(US$3.48bn)leveraged loan financing backing US private equity firm Hellman & Friedman’s DKr33.1bn (US$5.3bn) take-private of payments firm Nets, banking sources said.
The buyout is backed with €2.16bn-equivalent of term loans, €590m-equivalent of pre-placed second lien loans and a €200m-equivalent multicurrency revolving credit facility.
It is the largest leveraged loan financing this year and the largest single tranche euro term loan B since the financial crisis, the sources said.
The term loan is split between a €1.86bn, seven-year term loan B, paying 325bp-350bp over Euribor and a NKr2.795bn (€300m-equivalent), seven-year term loan B, paying 375bp-400bp over Nibor. Both are offered with a 0% floor, at 99.5 OID and 101 soft-call protection for six months.
The €590m-equivalent second lien loans pay 700bp over Euribor and 800bp over Nibor, with a 1% floor. The OID was not disclosed as it was preplaced with a few funds.
The €200m-equivalent RCF pays 325bp, with fees ranging between 75bp and 125bp, the sources said.
Investors have been asked to commit to the financing by November 27, the sources said.
Deutsche Bank, Bank of America Merrill Lynch, JP Morgan and Morgan Stanley are leading the leveraged loan financing alongside Nordea, Danske Bank, Nomura, Barclays, Nykredit and SEB.
Nets said in September it welcomed the offer from Hellman & Friedman, marking what would be one of the largest European private equity takeovers in recent years.
The Danish firm was taken public in Copenhagen a year ago and was valued at DKr30bn (US$4.75bn), or DKr150 per share, double what Advent International, Bain Capital and Danish pension fund ATP had paid for it two years earlier.
Following the latest deal Bain and Advent have agreed to maintain a 16% stake in Nets.
Nets said in July it had been approached by potential buyers as the payments industry saw a wave of deals, with consumers switching to card and mobile payments and regulatory changes promising to open up the fragmented market. ($1 = 0.8478 euros) (Editing by Alasdair Reilly)