| FRANKFURT/LONDON, Sept 10
FRANKFURT/LONDON, Sept 10 Ferry group Scandlines
and its private equity owners are set to strike a
deal with banks in coming weeks to refinance around 1 billion
euros ($1.3 billion) in loans, after a sale of the company
failed earlier this summer, several people familiar with the
"The talks are at a very advanced stage," one of the sources
Lenders including Danske Bank, Deutsche Bank
, Goldman Sachs Group Inc, ING, JP
Morgan, Mizuho, Societe Generale and
UBS have lined up senior leveraged loans to replace
debt expiring in 2015 and 2016. The financing is expected to be
sold to leveraged loan investors in a syndication process,
another source said.
DC Advisory is helping to arrange the debt package, one of
the sources added.
Private equity firms 3i and Allianz Capital Partners
(ACP) bought Scandlines for 1.5 billion euros at the
peak of the buyout boom in 2007, backed with 1.28 billion euros
of debt, according to Thomson Reuters LPC data.
Another minority investor in the deal was bought out in
In July, the investors put a sale process on ice after an
offer from a remaining bidder, buyout group TPG, fell
short of price expectations. Scandlines peer DFDS and
private equity group Star Capital had earlier dropped out of the
3i, ACP, DC Advisory and the banks declined to comment.
Scandlines, established in 1998, carries passengers and
freight between Denmark, Germany and Sweden. In 2012 it carried
11.7 million passengers, 2.7 million cars and 0.8 million cargo
In 2012, it saw a 6 percent rise in recurring EBITDA
(earnings before interest, tax, depreciation and amortisation)
to 193 million euros, compared with 2011.
An undersea road and rail tunnel being planned for 2020
between Denmark and Germany could reduce passenger numbers on
one of the group's busiest routes.
($1 = 0.7546 euros)
(Editing by David Holmes)