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