RLPC-CD&R's Mauser buyout backed with $1.6 bln loan

LONDON, June 6 Fri Jun 6, 2014 10:43am EDT

LONDON, June 6 (Reuters) - The acquisition of Germany-based packaging group Mauser by private equity firm Clayton Dubilier & Rice (CD&R) will be backed with $1.6 billion-equivalent of leveraged loans, banking sources said on Friday.

CD&R agreed to buy Mauser last month from Dubai International Capital (DIC) for 1.2 billion euros ($1.63 billion), in what was one of the largest asset disposals by the emirate since its debt crisis in 2009.

The deal will be financed with covenant-lite senior and junior loans denominated in euros and dollars with Credit Suisse, Barclays, BNP Paribas, ING, Natixis and Nomura leading the deal. [ID: nRLP48783a]

The financing will now be syndicated to other lenders and will be showcased at a bank meeting in London on June 12. Commitments are due by June 25, the banking sources said.

The financing includes $465 million and 340 million euros of seven-year, first lien loans and $405 million of eight-year, second lien loans. There is also a 150 million euro revolver and a 50 million euro capital expenditure facility, the banking sources said.

CD&R beat rival bids from a number of other parties as part of an auction process, including a joint bid from buyout firm Ardian in combination with industry rival Technoplast and one from Pamplona.

Mauser makes packaging equipment such as cans and drums for transporting medical waste and other hazardous chemicals. ($1 = 0.7345 Euros) (Editing by Christopher Mangham)