LONDON, Oct 3 (LPC) - EQT is set to take a €180m dividend from its Swedish enterprise software firm IFS as part of a wider €250m add-on term loan that will also repay drawings under a revolver credit facility and fund a merger and acquisition, banking sources said.
Morgan Stanley, Nordea and SEB are leading the financing, which was shown to investors at a bank meeting on Thursday.
The dividend will repay equity used to make an acquisition. The original equity put into IFS will remain at the same level.
EQT was not immediately available to comment.
The €250m add-on term loan is guided to pay 375bp-400bp, with a 0% floor at 99.75 OID.
At the same time IFS will alter pricing of its existing dual-currency loans to take account of higher leverage levels following the add-on loan. Leverage is set to rise to 5.6 times compared to 4.4 times currently.
IFS’s existing euro term loan, which pays 325bp but was due to ratchet higher to 350bp, will reprice in line with the new money, while its dollar term loan, which currently pays 375bp, will also reprice to maintain a 25bp relative value to the euro tranche.
Lenders have been asked to commit to the loan by October 15 and existing lenders are being offered a 12.5bp consent fee for the dividend.
EQT bought a majority stake in IFS at a valuation of around US$1bn in 2015. (Editing by Christopher Mangham)