LPC-European lingerie in China http://www.lover-beauty.com/ LBO activity stays strong
LONDON, Wholesale Bikini http://www.lover-beauty.com/Bikini/ Sept 4 Leveraged loan bankers are
working on financings lingerie in China totalling up to 12 billion euros to back a number of new buyouts that are in the auction
phase as Europe’s leveraged loan market becomes increasingly
attractive amid wider macro volatility.
Global market instability stemming from China’s stock market
rout and tumbling commodity and oil prices have led many sellers
to broaden their exit route opportunities in order to extract
the best value.
A number of sellers are running dual-track processes to
engage with as many buyers as possible. Such deals include those
of British payments processing firm Worldpay IPO-WORLD.L,
French smartcard maker Oberthur Technologies, Swedish chemicals
firm Perstorp and Ardagh’s metal can packaging business Oressa.
"A lot of the companies up for sale were firmly IPO
candidates until about a month ago," a loan banker said. "The
only reason they are coming back as potential buyouts is because
of the volatility. It is attractive for a seller to get rid of
100 percent of a business rather than listing, but it depends on
expectations and how much buyers are willing to pay."
Europe’s leveraged loan market has been crying out for
large-scale M&A, which is down significantly from last year with
only a handful of deals taking place so far in 2015, including
purchases of Saint-Gobain’s glass bottle unit Verallia
and German perfume and cosmetics retailer Douglas.
"No one knows when the IPO market will open," a second loan
banker said. "There are a lot of IPO financings being held at
bay until there is a bit more clarity on the situation and the
market."
Bankers are working on leveraged debt financings to back the
potential sales with about 4.5 billion euros required for a
buyout of Worldpay. Ardagh’s Oressa unit would require some 1.6
billion euros of debt, while bankers are working on deals of
around 1 billion euros each for Oberthur and Perstorp.
Bankers are also working on financings to back the potential
sales of other companies, including 650 million euros of debt
for French call centre business Webhelp, after UK private equity
firm Charterhouse mandated Deutsche Bank for a sale of its 60
percent stake.
UK petrol station operator Euro Garages and Airbus’s
defence unit could need up to 700 million pounds and 700 million euros of debt, respectively. Bankers
also lined up about 450 million euros of debt to back a buyout
of Dutch lingerie firm Hunkemoller, and although the process is
proving slow a sale or refinancing could still go ahead.
Other smaller potential financings out there include around
370 million pounds for a potential sale of British retailer
Tesco’s customer data business dunnhumby; 300 million
euros for German automotive parts maker Al-Ko; and 180 million
euros for Irish payments business Fintrax.
COMPETITIVE BID
Private equity buyers have become quite competitive compared
with corporate buyers, many of whom have suffered from the wider
volatility. With buyout firms cash-rich and needing to spend,
they could offer quite attractive propositions to win some of
the auction processes.
"With continued volatility there is a greater likelihood
that you end up hitting a bid on a sales process," a third
banker said. "Trade or publicly listed buyers have been hit as
the currency of their own equity has been affected by market
volatility.
"As their equity is less valuable they will be prepared to
pay less as comparable market valuations can’t justify as high a
price. That makes private equity bidders that have a lot of cash
to put to work all of a sudden far more valuable."
In September, 10 leveraged loans totalling 4.5 billion euros
are expected to be launched. Although pricing could widen
slightly to take into account the volatility, investor appetite
remains strong. [ID: nL5N1172NJ]
If private equity is successful during auction processes,
buyout loans could hit the market around November, which could
lead to a very busy and profitable fourth quarter. Depending on
how many deals hit the market, lenders hope renewed deal flow
will prompt more CLO issuance in order to keep the market
liquid.
"The loan market has proved it has more than enough capacity
to deal with a large number of deals coming at the same time,
even if some are large. Investors will be looking for healthier
deal flow, which will give confidence to the market and
confidence to raise more money," the third banker said.
LONDON, Wholesale Bikini http://www.lover-beauty.com/Bikini/ Sept 4 Leveraged loan bankers are
working on financings lingerie in China totalling up to 12 billion euros to back a number of new buyouts that are in the auction
phase as Europe’s leveraged loan market becomes increasingly
attractive amid wider macro volatility.
Global market instability stemming from China’s stock market
rout and tumbling commodity and oil prices have led many sellers
to broaden their exit route opportunities in order to extract
the best value.
A number of sellers are running dual-track processes to
engage with as many buyers as possible. Such deals include those
of British payments processing firm Worldpay IPO-WORLD.L,
French smartcard maker Oberthur Technologies, Swedish chemicals
firm Perstorp and Ardagh’s metal can packaging business Oressa.
"A lot of the companies up for sale were firmly IPO
candidates until about a month ago," a loan banker said. "The
only reason they are coming back as potential buyouts is because
of the volatility. It is attractive for a seller to get rid of
100 percent of a business rather than listing, but it depends on
expectations and how much buyers are willing to pay."
Europe’s leveraged loan market has been crying out for
large-scale M&A, which is down significantly from last year with
only a handful of deals taking place so far in 2015, including
purchases of Saint-Gobain’s glass bottle unit Verallia
and German perfume and cosmetics retailer Douglas.
"No one knows when the IPO market will open," a second loan
banker said. "There are a lot of IPO financings being held at
bay until there is a bit more clarity on the situation and the
market."
Bankers are working on leveraged debt financings to back the
potential sales with about 4.5 billion euros required for a
buyout of Worldpay. Ardagh’s Oressa unit would require some 1.6
billion euros of debt, while bankers are working on deals of
around 1 billion euros each for Oberthur and Perstorp.
Bankers are also working on financings to back the potential
sales of other companies, including 650 million euros of debt
for French call centre business Webhelp, after UK private equity
firm Charterhouse mandated Deutsche Bank for a sale of its 60
percent stake.
UK petrol station operator Euro Garages and Airbus’s
defence unit could need up to 700 million pounds and 700 million euros of debt, respectively. Bankers
also lined up about 450 million euros of debt to back a buyout
of Dutch lingerie firm Hunkemoller, and although the process is
proving slow a sale or refinancing could still go ahead.
Other smaller potential financings out there include around
370 million pounds for a potential sale of British retailer
Tesco’s customer data business dunnhumby; 300 million
euros for German automotive parts maker Al-Ko; and 180 million
euros for Irish payments business Fintrax.
COMPETITIVE BID
Private equity buyers have become quite competitive compared
with corporate buyers, many of whom have suffered from the wider
volatility. With buyout firms cash-rich and needing to spend,
they could offer quite attractive propositions to win some of
the auction processes.
"With continued volatility there is a greater likelihood
that you end up hitting a bid on a sales process," a third
banker said. "Trade or publicly listed buyers have been hit as
the currency of their own equity has been affected by market
volatility.
"As their equity is less valuable they will be prepared to
pay less as comparable market valuations can’t justify as high a
price. That makes private equity bidders that have a lot of cash
to put to work all of a sudden far more valuable."
In September, 10 leveraged loans totalling 4.5 billion euros
are expected to be launched. Although pricing could widen
slightly to take into account the volatility, investor appetite
remains strong. [ID: nL5N1172NJ]
If private equity is successful during auction processes,
buyout loans could hit the market around November, which could
lead to a very busy and profitable fourth quarter. Depending on
how many deals hit the market, lenders hope renewed deal flow
will prompt more CLO issuance in order to keep the market
liquid.
"The loan market has proved it has more than enough capacity
to deal with a large number of deals coming at the same time,
even if some are large. Investors will be looking for healthier
deal flow, which will give confidence to the market and
confidence to raise more money," the third banker said.
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