| LONDON, July 16
LONDON, July 16 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)