LONDON Aug 1 Bankers are working on debt financing up to 415 million euros (555.89 million US dollar) to back a potential sale of Corialis, as Advent International enters exclusive negotiations for the Belgian aluminum systems manufacturer, bankers said on Friday.
Advent said on Friday that it had entered exclusive negotiations with Corialis owners Sagard and Ergon to buy the business along with its management.
Jefferies, Rabobank and UBS have lined up a covenant-lite, leveraged loan of up to 414 million euros or 5.5-6 times Corialis' Earnings Before Interest, Taxation, Depreciation and Amortisation (EBITDA) of approximately 69 million euros, the bankers said.
Advent was not immediately available to comment on the financing.
The loans consist of a first and second lien tranche and will be syndicated to institutional investors, the bankers added.
In January, Corialis, formerly known as Aliplast, extended the maturities of its 2007 buyout loan and increased the margins via agent and co-ordinator Rabobank, to improve its capital structure before a potential sale.
Sagard and Ergon Capital Partners bought a majority stake in Corialis in January 2007, backed with 331 million euros of debt, according to Thomson Reuters LPC data.
Corialis is a supplier of aluminium systems for windows, doors, conservatories and curtain walls across Belgium, France, the UK and Poland.
It employs 1,200 people and generated revenues of 321 million euros in 2012, according to Sagard's website. (1 US dollar = 0.7465 euro) (Editing by Tessa Walsh)