BNP Paribas and ING Barings are mandated to arrange the EURO164.9 million leverage debt financing to support the buyout of Malmo-based global brake systems manufacturer SAB WABCO by US private equity sponsor Vestar Capital Partners. The buyout from Swedish parent company Cardo AB was agreed in July and values the business at around EURO230 million.
The senior debt element totals EURO139.9 million and comprises a EURO70.6 million seven-year term loan A at 225bp, a EURO19.6 million eight-year term loan B at 275bp, a EURO19.7 million nine-year term loan C at 325bp, and a EURO30 million seven-year revolving credit at 225bp over Euribor with a commitment fee of 75bp.
The EURO25 million mezzanine has already been placed with two mezzanine houses and there are no plans to syndicate it further.
The arrangers are planning to launch syndication in the second week of October, offering tickets around the EURO15 million to EURO20 million level.
Debt multiples are conservative when compared to some of the larger deals in the market, with senior debt to EBITDA at 3.1x and total debt at 3.8x.