RLPC-Stobart Logistics buy backed with 160 mln stg loan
LONDON, April 1
LONDON, April 1 (Reuters) - The sale of a majority stake of Eddie Stobart Logistics, the transport and distribution arm of British freight company Stobart is being financed with 160 million pounds ($266.17 million) of debt, banking sources said on Tuesday.
The sale of a 51 percent stake in the unit to Isle of Man-based investment firm DouglasBay Capital, William Stobart and management was announced last month for 239.7 million pounds plus 41.1 million pounds in assumed debt.
Stobart, whose clients include Tesco, easyJet and Aer Lingus Regional, said it would retain the remaining 49 percent stake in the business.
The deal will be financed with a 160 million pound, seven-year term loan B guided to pay 500bp over Libor and offered with a 99 OID, the banking sources said.
The loan is being arranged by Credit Suisse and Bank of Ireland and was showcased to institutional investors at a bank meeting in London on Tuesday. Commitments are due April 11, the banking sources said.
Eddie Stobart Logistics was not immediately available to comment. Stobart Group declined to comment.
Part of the proceeds of the deal will repay the Group's 100 million pound loan from M&G, Stobart said in a statement.
Eddie Stobart Logistics generated revenue of 475.7 million pounds in the year ended 28 February 2013, according to its website. ($1 = 0.6011 British Pounds) (Editing by Christopher Mangham)
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