RLPC-Cinven's GNFT buyout backed with 325 mln euro loan
LONDON, July 16
LONDON, July 16 (Reuters) - Cinven's acquisition of Spanish utility Gas Natural's telecommunications affiliate Gas Natural Fenosa Telecomunicaciones (GNFT) will be backed with a 325 million euro ($440.08 million) leveraged loan financing, banking sources said on Wednesday.
Private equity firm Cinven agreed to buy Fibre network operator GNFT last month for 510 million euros.
UBS and Barclays are arranging the all-senior leveraged loan financing which has launched for syndication and is being shown to investors at a bank meeting in London on Wednesday.
Lenders have been asked to make commitments by the end of July, the banking sources said.
The financing includes a 295 million euro, seven-year term loan B paying an interest margin of 475 basis points (bps) over Euribor, which is offered with an original issue discount of 98.5. There is also a 30 million euro, six revolving credit facility paying 400bps over Euribor, the banking sources said.
Leverage on the deal is 5.5 times.
Cinven declined to comment.
GNFT's assets are mostly located in Central America, where Gas Natural's electricity arm installed fibre optic networks alongside power cables. Its core earnings (EBITDA) grew at a compound annual growth rate of 13 percent over the last three years, including a rate of 20 percent in Latin America.
($1 = 0.7385 Euros) (Editing by Christopher Mangham)