November 27, 2017 / 12:23 PM / a year ago

LPC-TMF launches €1.3bn buyout loan

LONDON, Nov 27 (Reuters) - Dutch-headquartered business services firm TMF Group has launched a €1.3bn leveraged loan financing backing CVC’s acquisition of the firm, banking sources said.

The deal comprises a €950m, seven-year covenant-lite term loan B, a €200m, eight-year second-lien loan and a €150m, 6.75-year multi-currency revolving credit facility, the sources said.

Goldman Sachs and HSBC are leading the financing as physical bookrunners, joined by Barclays, Credit Suisse, Jefferies and Nomura as mandated lead arrangers, the sources said.

A bank meeting is scheduled for Wednesday, when pricing is expected to emerge, with commitments due by December 7, the sources added.

The financing will have pro forma net first lien leverage of 5.6x and net total leverage of 6.8x, based on pro forma Ebitda of €161.6m to September 2017, the sources said.

CVC agreed to buy TMF for €1.75bn last month, after owner Doughty Hanson shelved plans to list the firm on the London Stock Exchange.

Public markets have been rocky, with several other firms also cancelling planned listings, leading Doughty Hanson to look to a private buyer instead.

The acquisition is the first for CVC’s latest buyout fund, raised earlier this year at €16bn, the largest ever in the currency.

TMF provides compliance and administrative services, counting 60% of the Forbes 100 and FTSE 100 among its clients, according to its website. (Editing by Claire Ruckin)

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