Lindorff targeting high-yield bond for LBO

Tue Jul 22, 2014 11:44am EDT

LONDON, July 22 (IFR) - Lindorff is looking to raise a high-yield bond to back Nordic Capital's recent acquisition of the company, said a banker on the deal.

Deutsche Bank and Goldman Sachs are leading the transaction, although the banker added that Nordea may have a role as well.

Lindorff is based in Norway, and in addition to debt collection and debt purchase it also offers information services, payment services and invoicing services.

A number of debt purchasers have tapped the high-yield bond market in recent years, primarily UK-based firms with sterling deals. Lowell, Cabot, Arrow Global, Marlin Financial and 1st Credit have all priced high-yield sterling bonds in the past two years.

Altor and Investor AB announced last week that they will sell the majority of their holdings in the debt collection firm to Nordic Capital, for an enterprise value of EUR2.3bn. Altor acquired Lindorff in 2004 and Investor AB bought 50% of the company in 2008.

Nordic Capital could not be immediately reached for comment.

The European high-yield bond market has experienced some volatility in recent weeks, with Winoa Group pulling a deal after investor pushback on Tuesday. Despite this, the banker said that the deal may be launched before the August break.

"Issuers may hold off from opportunistic refinancings, but those with acquisition-driven trades are still bringing deals," he said.

"Pizza Express is marketing its LBO bond, and TMF Group is pricing a small deal backing an acquisition today. If you need a deal done, there's no reason to wait."

The Lindorff transaction is the second major leveraged buyout of a Nordic financial services firm this year, following the sale of Danish card payment services company Nets in March. That deal was financed in the leveraged loan market rather than the bond market, however. (Reporting by Robert Smith; Editing by Philip Wright)