LONDON, April 17 (LPC) - Private equity firm Platinum Equity’s acquisition of US hotelier Wyndham Worldwide Corp’s European vacation rental business will be backed with an €857m leveraged loan, banking sources said.
Bank of America Merrill Lynch and Deutsche Bank are leading the financing, alongside Goldman Sachs, Barclays and Morgan Stanley. The deal launched for syndication on Tuesday.
The financing comprises a €585m seven-year covenant-lite term loan B and a €167m eight-year syndicated second-lien loan as well as a €105m six-year multi-currency revolving credit facility.
The TLB is offered with 101 soft-call protection for six months, while the second lien is offered at 102, 101, par.
A bank meeting is set to take place in London on Wednesday to show the deal to investors, when pricing is expected to emerge. Investors have been asked to commit to it by April 27.
Wyndham Worldwide agreed to sell the unit, now known as Wyndham Vacation Rentals Europe, to Platinum Equity for about US$1.3bn, it was announced in February ending a six- month long review process for the business.
Wyndham said last August it would split into two publicly traded companies – Wyndham Hotel Group and Wyndham Vacation Ownership - and explore alternatives for the European holiday rentals business.
Editing by Christopher Mangham