LONDON Nov 22 Blackstone has entered
into exclusive talks to buy Dutch trust and corporate management
business Intertrust Group, put up for sale by private equity
firm Waterland, banking sources said on Thursday.
Banks including Bank of America Merrill Lynch,
Deutsche Bank, Nomura and UniCredit
are now working on financing of around 400-500 million
euros ($512.76-$640.95 million) to back the deal, bankers said.
Waterland bought Intertrust in September 2009, backed by
around 140 million euros of debt. Earlier this year, Intertrust
bought Walkers Management Services, refinanced its debt and got
an additional loan, bringing its total debt to 250 million
Blackstone, Cinven and Pamplona were the three remaining
buyout houses competing for the deal after Carlyle and Goldman
Sachs Private Equity dropped out at an earlier stage
Second round bids were submitted on November 7 in an auction
process run by ING, bankers said.
Blackstone's exclusive talks are expected to last a couple
of weeks. Blackstone declined to comment. Waterland was not
immediately available to comment.
The buyout has attracted a lot of interest from banks
wanting to finance the deal after disappointing levels of
leveraged buyout activity so far this year. M&A volumes driven
by private equity have fallen 53 percent to $20.9 billion year-
to-date compared to $44.3 billion for the same period in 2011,
according to Thomson Reuters LPC data.
Financing for the buyout will be made up of senior leveraged
loans or a mixture of senior leveraged loans and mezzanine debt.
This could be offered to relationship loan investors before the
end of the year and then launched for general syndication to
institutional investors early next year.
Founded in 1952, Intertrust has more than 1,000 employees in
moreover 20 countries worldwide. Its core business is to set up
and manage holding companies, Waterland said on its website.