October 11, 2016 / 2:31 PM / a year ago

LPC-Banks line up £300m of debt for Oasis sale

LONDON, Oct 11 (Reuters) - Banks are lining up around £300m of debt financing to back a potential sale of UK dentistry chain Oasis, banking sources said on Tuesday.

Private equity firm Bridgepoint, which acquired Oasis in 2013 from Duke Street for 219m, is considering selling the company and hired Rothschild earlier this year to advise on the process, the sources said.

The sale is attracting a lot of interest from private equity firms and first round bids are expected this month, the sources said.

A bank education process took place in recent weeks and bankers are now lining up leveraged loans to back any potential bids, the sources said.

Some 300m of debt equates to around 6 times Oasis’ approximate £50m Ebitda, the sources said.

Bridgepoint was not immediately available to comment.

Banks are competing to underwrite buyout financings and earn more lucrative fees, following a lack of event-driven loans in 2016.

The 2013 buyout of Oasis was backed with £146.5m of banking facilities provided by Bank of Ireland, Barclays, GE Capital, HSBC, ING and Societe Generale. Bridgepoint committed £60m in capital expenditure to help the business expand its presence, according to Thomson Reuters LPC data. (Editing by Christopher Mangham)

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