RLPC-KKR lines up 600 mln euro loan to buy rest of WMF

LONDON, July 28 Mon Jul 28, 2014 10:12am EDT

LONDON, July 28 (Reuters) - Buyout group KKR's offer to take full control of German listed cutlery and coffee-machine maker WMF will be backed with a 600 million euro leveraged loan financing, banking sources said on Monday.

KKR, which already owns 72 percent of WMF, launched an offer earlier this month to take full control of the company, which it then plans to delist from the Frankfurt stock exchange.

Commerzbank and Deutsche Bank are leading the debt financing to back the deal which is due to be launched for syndication to investors after the summer, the banking sources said.

The senior loan financing comprises a 550 million euro term loan B and a 50 million euro revolving credit facility, the banking sources said.

KKR and WMF were not immediately available to comment.

WMF has two business units including a consumer business, which provides a range of products for private households under the brands alfi, Auerhahn, Kaiser, Silit and WMF. The second unit manufactures fully automatic coffee machines for professional use under the brands Schaerer and WMF that are supplied to hotels, cruise ships, cafes and bistros, according to WMF's website. (Editing by Christopher Mangham)

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