RLPC-Tank & Rast to launch 2.1 bln euro refinancing
LONDON Oct 11 (Reuters) - German motorway services operator Tank & Rast is arranging a refinancing of its 2.1 billion euros ($2.84 billion) in debt, banking sources said on Friday.
Private equity firm Terra Firma acquired Tank & Rast in 2005 backed with 820 million euros of debt and arranged a refinancing in 2006, when it increased the firm's debt to 1.2 billion euros in order to pay itself a dividend, according to Thomson Reuters LPC data.
Terra Firma sold around half of its stake in the business in 2007 to Deutsche Bank's infrastructure division RREEF, between them using a 2.27 billion euro leveraged loan to back the buyout, arranged by Barclays, Royal Bank of Scotland, Societe Generale and UBS, TRLPC data shows.
Morgan Stanley has been working as financial adviser to discuss refinancing options on Tank & Rast's debt, which starts to mature in November 2014.
The refinancing is due to launch in the coming months, banking sources said.
A range of options have been considered and could include leveraged loans - loans extended to a party that already has extensive debt - or high-yield bonds or a Whole Business Securitisation. As part of the refinancing, Terra Firma could inject fresh equity into the business, banking sources said.
Tank & Rast is one of the best performing companies in Terra Firma's portfolio and has approximately doubled its Earnings Before Interest, Tax, Depreciation and Amortisation (EBITDA) since being taken over in 2005, one of the sources said.
Terra Firma declined to comment and RREEF was not immediately available to comment.
Tank & Rast's senior debt is trading at around 96 percent of face value on Europe's secondary market while its junior debt is trading at 90 percent of face value.
Tank & Rast has a leading position on Germany's Autobahn network, with its concessions serving around 500 million visitors every year. Tank & Rast's network includes around 380 restaurants, 350 petrol stations and 50 hotels, according to Terra Firma's website.
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