LONDON Dec 6 Hellman & Friedman's acquisition
of a 70 percent stake in Deutsche Telekom's classified
advertising business Scout24 will be supported by over 700
million euros ($955.96 million) of debt financing, banking
sources said on Friday.
Deutsche Telekom announced the sale in November
for 1.5 billion euros, almost a year after it said it would look
at options for Scout24, a cluster of Internet portals which
includes European car trading site AutoScout24 and real estate
Barclays, Nomura and RBC are
leading the leveraged loan financing which will be presented to
investors during the week of January 6 and subsequently sold,
the sources said.
The deal, which will be one of the first buyout financings
to launch in 2014, is likely to attract significant interest
from debt investors eager to do a deal after a lack of M&A
activity in 2013.
The financing includes a term loan B totalling 650 million
euros and a revolving credit facility. There is also a 50
million euro second lien tranche which has been pre sold to
Macquarie, the sources added.
Leveraged totals around 5.7 times Scout24's earnings before
interest, tax, depreciation and amortisation (EBITDA) of
approximately 122.5 million euros, the sources said.
Deutsche Telekom, Hellman & Friedman and Scout24 declined to
Deutsche Telekom is looking for cash to fund the expansion
of a fourth-generation mobile network that can transport huge
amounts of data to cater for the growing number of customers who
use smartphones and tablet computers. At the same time it is
rolling out a glass fibre fixed network to offer superfast
internet to compete against its cable rivals.