LONDON Feb 25 ISS is in talks over a
refinancing or an extension of its 32 billion Danish crown ($5.7
billion) debt banking sources said, adding the Danish
outsourcing firm may list its shares this year.
ISS has to address around 8 billion crowns debt, including
4.2 billion of loans, by next year and 19 billion by 2015. The
firm has accumulated debt since being bought by private equity
firms EQT and Goldman Sachs Capital Partners in 2005.
It is now seeking to raise either new loans or high yield
bonds to replace maturing term and second-lien loans amid strong
credit market conditions which have allowed borrowers to cut
borrowing costs since the start of the year.
ISS has actively addressed its looming maturities over the
past two years, paying down a 525 million euro high yield bond
due 2014 following an equity investment by Ontario Teachers'
Pension Plan and Kirkbi Invest last year.
An "amend and extend" procedure on existing loans is an
option, bankers said, after completing one in 2011 following the
withdrawal of its initial public offering.
An ISS spokesperson said it was looking at an IPO "within a
few years", without commenting further on the timing of an IPO
or a refinancing.
ISS's plans to list on the Copenhagen stock exchange were
pulled in March 2011 because of volatile market conditions
following an earthquake in Japan and unrest in the Middle East.
The private equity owners then agreed to sell the business
to British security company G4S but the merger was
blocked by G4S's shareholders.
($1 = 5.6464 Danish crowns)
(Editing by Dan Lalor)