RLPC-Bankers line up aggressive debt financing for BvD sale

LONDON, July 11 Fri Jul 11, 2014 12:06pm EDT

LONDON, July 11 (Reuters) - Bankers are preparing debt financing packages of around 900 million euros ($1.23 billion) to back a potential sale of Dutch information provider Bureau Van Dijk Electronic Publishing (BvD), banking sources said on Friday.

Charterhouse acquired the company in July 2011 backed with 505 million euros of leveraged loans. Shareholders took a 210 million euro dividend payment earlier this year by amending existing debt and raising a new subordinated loan, according to Thomson Reuters LPC data.

Charterhouse is now seeking to sell the company and has attracted interest from a number of potential buyers eager to do deals following a lack of M&A so far this year, including buyout firms Cinven and Providence. Other interested buyers include CVC, EQT and Warburg Pincus, banking sources said.

All of the buyout firms either declined to comment or were not immediately available to comment.

Bankers are putting together aggressive debt financing packages to back a sale at around 8 times BvD's approximate 110 million euro earnings before interest, taxes, depreciation and amortization (EBITDA), the banking sources said.

BvD had debt to earnings of around 6.7 times after Charterhouse took a dividend in February, before that it was around 4.7 times, the banking sources said.

"Bankers are putting together very aggressive debt financing packages to back BvD, it is a sign of the market where investors are desperate to lend and borrowers can drive up leverage," one of the banking sources said.

Established in 1991, BvD is an electronic publisher of private company financial information and has more than 550 employees operating from 32 offices across Europe, the Americas and Asia, according to Charterhouse's website. ($1 = 0.7331 Euros) (Editing by Christopher Mangham)

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