RLPC-N&W Global Vending's sale eased by bank financing-sources
LONDON, Aug 28 (Reuters) - Italian vending machine manufacturer N&W Global Vending has secured financing from a group of seven banks to support its sale by private equity firms Argan Capital and Merrill Lynch Global Private Equity, banking sources close to the deal said on Thursday.
Securing financing was proving difficult in the illiquid leveraged loan market and considerably increased the probability of the sale, sources said.
A consortium of Barclays Private Equity and Investcorp is in exclusive talks with vendors over the sale, they added.
The leveraged loan backing the sale has been provided by Bank of Ireland, Barclays, BNP Paribas, Calyon, ING, Intesa SanPaolo and Societe Generale, sources said.
Syndication of the financing is expected to take place in September.
The loan mandate follows a staple financing of around 600 million euros ($887.4 million) that supported the sale and was underwritten on an equal basis by Intesa SanPaolo, Merrill Lynch and Societe Generale.
Merrill Lynch was unable to join the mandated group, sources said.
The financing joins a handful of leveraged buyout loans that have been put together this year in Europe to back private equity firms' purchases.
Successful recent private equity purchases have also required significant concessions from vendors, such as vendor loans, and private equity buyers have had to provide large equity cheques.
N&W Global Vending's sale did not require a vendor loan, sources said, as the company has outperformed budget which has reduced leverage levels.
"Financing is available for good assets," a banker close to the deal said.
Argan Capital and Merrill Lynch Private Equity teamed up with N&W Vending's management to lead a buyout of the company in November 2005.
N&W Global Vending makes vending machines for a variety of snacks and hot and cold drinks. Brands include Necta and Wittenborg. (Reporting by Alasdair Reilly and Zaida Espana; Writing by Tessa Walsh; editing by Sue Thomas)
