Nets Holding buyout backed by 1.2 billion euro loan: bankers

LONDON Thu Apr 10, 2014 11:39am EDT

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LONDON (Reuters) - A debt financing of up to 1.2 billion euros ($1.66 billion) backing the buyout of Europe's second-largest card payment services company Nets Holding will be launched to investors after Easter, banking sources said on Thursday.

Private equity funds Advent International and Bain Capital, along with Danish pension fund ATP agreed to buy Nets from a group of Nordic banks for 17 billion Danish crowns ($3.

JP Morgan, Nordea, UBS, Danske Bank, Deutsche Bank, Mizuho and Nykredit have arranged a senior loan financing of 1.1-1.2 billion euros, which is denominated in euros and local currency.

The financing is likely to consist of a term loan B tranche and revolving credit facility.

The bank meetings are due to take place in the week of April 21 after the Easter bank holiday.

Leverage on the debt financing is around 5.5 times Nets Earnings Before Interest, Tax, Depreciation and Amortization (EBITDA) of around 200 million euros.

Advent and Bain declined to comment. ATP was not immediately available to comment.

Nets, formed in 2010 through the merger of Norwegian Nordito and Danish PBS, bought Finnish payments company Luottokunta in 2012 and handled more than 6 billion card transactions supporting more than 33 million payment cards last year and more than 500,000 merchants in the Nordics.

($1 = 0.7234 Euros) ($1 = 5.3787 Danish Crowns)

(Editing by Tessa Walsh)

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