RLPC-Bankers ready debt as CVC gears up to buy French Vedici

LONDON Thu May 29, 2014 8:39am EDT

LONDON May 29 (Reuters) - Bankers are working on debt packages of up to 400 million euros ($543.90 million) to back a potential sale of French healthcare company Vedici as CVC looks set to buy the business, banking sources said on Thursday.

3i and NI Partners, the private equity division of the Natixis group, bought Vedici in 2010 from Apax Partners and have now decided to sell the company, entering into exclusive talks with CVC, the banking sources said.

A 400 million euro financing would equate to around 5.5-6 times Vedici's earnings before interest, taxes, depreciation and amortization (EBITDA) of approximately 45 million euros, the banking sources said.

Debt will be in the form of leveraged loans and include around 250-275 million euros of term loan B and around 125 million euros of undrawn facilities, split between capital expenditure and revolving credit facilities, the banking sources said.

Founded in 2000, Vedici is one of the main players in the private healthcare sector in France employing around 6,100 staff. Vedici runs over 5,000 beds in 35 care facilities which are located from Paris to Toulouse. It had annual turnover of 547 million euros as of December 2012, according to 3i's website.

CVC, 3i and NI Partners were not immediately available to comment. ($1 = 0.7354 Euros) (Editing by Christopher Mangham)

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