RLPC-Tank & Rast gears up for 2.1 bln euro refinancing
LONDON Oct 31 (Reuters) - German motorway services operator Tank & Rast's refinancing of its 2.1 billion euro ($2.89 billion) debt pile is gathering pace and expected to launch shortly, banking sources said on Thursday.
Private equity firm Terra Firma acquired Tank & Rast in 2005 backed with 820 million euros of debt. It conducted a refinancing in 2006 when it increased its debt to 1.2 billion euros in order to pay itself a dividend, according to Thomson Reuters LPC data.
Terra Firma sold around half its stake in the business in 2007 to Deutsche Bank's infrastructure division RREEF, using a 2.27 billion euro leveraged loan financing to back the buyout.
Morgan Stanley was appointed earlier this year to advise on the latest refinancing of Tank & Rast's debt, which starts to mature in November 2014.
Banks close to the refinancing include Barclays, Deutsche, Nomura and Societe Generale and the deal is expected to complete this year, banking sources said.
The refinancing will total around 9 times Tanks & Rast's earnings before interest, taxes, depreciation and amortisation (EBITDA) of around 240 million euros.
The refinancing is expected to include senior leveraged loans and high-yield bonds at the operating company level and a payment-in-kind note at the holding company level, sources added.
As part of the refinancing Terra Firma will not inject fresh equity into the business, the banking sources said.
Terra Firma and RREEF declined to comment.
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.
($1 = 0.7262 euros) (Editing by David Evans)
- Flights delayed as air pollution hits record in Shanghai
- White House reverses, says Obama met uncle and lived with him during law school
- South Africa mourns Mandela, will bury him on December 15 |
- French launch Central African Republic mission but deaths mount
- Supreme Court to decide on patent protections for software