| LONDON, Sept 17
LONDON, Sept 17 Bankers are putting together up
to 600 million euros ($801.15 million) of debt financing to back
a sale of French construction company Materis' industrial
mortars unit Parax, banking sources said on Tuesday.
French private equity firm Wendel acquired Materis
in 2006 in a leveraged buyout and has been seeking to dispose of
some assets in a bid to reduce Materis' 1.9 billion euro debt
pile and ease pressure on the company. It also wants to reduce
its overall exposure to construction.
It launched a sale process last month hiring BNP Paribas and
Rothschild as advisers on the deal which has a price tag of
around 1 billion euros and is expected to complete in the first
half of 2014.
First round bids in an auction process are due around
October 7, the bankers said.
Wendel was not immediately available to comment.
Bankers are preparing debt packages of between 4.5 times to
6 times Parax's approximate 99 million euro earnings before
interest, taxes, depreciation and amortisation (EBITDA). A range
of debt instruments are being considered including senior
leveraged loans and subordinated debt such as high yield bonds,
Materis' loans have risen on Europe's secondary loan market
since the deal was announced and were quoted at 95.30 on Tuesday
compared to 93.5 in mid-August, according to Thomson Reuters LPC
Last year, BNP Paribas and Rothschild were also handling the
sale of Materis' aluminates supplier Kerneos but the process
failed after bids fell short of an around 680 million euro price
($1 = 0.7489 euros)
(Editing by Christopher Mangham)