RLPC-Bankers prep $625 mln financings for Sulzer's Metco sale -bankers
LONDON Oct 31 (Reuters) - Bankers are working on financing packages of around 560 million Swiss francs ($624.69 million) to back a sale of Swiss machinery manufacturer Sulzer's coatings unit Metco, banking sources said on Thursday.
Credit Suisse was hired earlier this year to manage the sale of Metco, the world's largest maker of thermal spray coatings, catering to the car, chemicals and energy industries, which could fetch 800 million Swiss francs.
The sale attracted interest from a number of private equity firms and strategic corporate buyers, which submitted tentative bids earlier this month.
Two peers, Swiss Oerlikon and British Bodycote and two private equity firms including EQT have made it through to the second round of an auction process on Jan. 8.
Oerlikon, Bodycote and Sulzer were not immediately available to comment. EQT declined to comment.
Bankers are preparing debt packages of 5.5 times to six times Metco's earnings before interest, taxes, depreciation and amortisation (EBITDA) of around 98 million Swiss francs to back private equity bids, the bankers said.
The debt could be a mix of senior leveraged loans and high yield bonds, denominated in Swiss francs, euros and dollars, they added.
Sulzer is selling the Metco unit to concentrate on more lucrative businesses making pumps and equipment and providing services for the oil and gas industry.
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