RLPC-ISS in debt refinancing talks, IPO revival - sources

LONDON Mon Feb 25, 2013 12:01pm EST

LONDON Feb 25 (Reuters) - ISS is in talks over a refinancing or an extension of its 32 billion Danish crown ($5.7 billion) debt banking sources said, adding the Danish outsourcing firm may list its shares this year.

ISS has to address around 8 billion crowns debt, including 4.2 billion of loans, by next year and 19 billion by 2015. The firm has accumulated debt since being bought by private equity firms EQT and Goldman Sachs Capital Partners in 2005.

It is now seeking to raise either new loans or high yield bonds to replace maturing term and second-lien loans amid strong credit market conditions which have allowed borrowers to cut borrowing costs since the start of the year.

ISS has actively addressed its looming maturities over the past two years, paying down a 525 million euro high yield bond due 2014 following an equity investment by Ontario Teachers' Pension Plan and Kirkbi Invest last year.

An "amend and extend" procedure on existing loans is an option, bankers said, after completing one in 2011 following the withdrawal of its initial public offering.

An ISS spokesperson said it was looking at an IPO "within a few years", without commenting further on the timing of an IPO or a refinancing.

ISS's plans to list on the Copenhagen stock exchange were pulled in March 2011 because of volatile market conditions following an earthquake in Japan and unrest in the Middle East.

The private equity owners then agreed to sell the business to British security company G4S but the merger was blocked by G4S's shareholders. ($1 = 5.6464 Danish crowns) (Editing by Dan Lalor)