Brenntag changes €2.5bn loan for IPO

Privately owned German chemical distributor Brenntag is amending its €2.5bn leveraged loan to allow an initial public offering, banking sources have said.

The loan amendment, which brings Brenntag’s flotation closer, offers existing lenders increased interest margins to agree changes which include using IPO proceeds to repay junior mezzanine loans before senior debt, a banker close to the deal said.

Reuters reported in September that Brenntag’s private equity owner, BC Partners, was planning an equity issue of up to €1.5bn, which would be Germany’s biggest flotation in years and leave BC Partners with less than 50% of the company.