LONDON, July 4 A 709 million euro-equivalent ($967.11 million) covenant-lite financing backing private equity firms Montagu and Astorg's acquisition of French medical diagnostics company Sebia has launched for syndication, banking sources said on Friday.
Montagu and Astorg announced they would buy Sebia from Cinven last month after entering exclusive negotiations.
The buyout firms are financing a 1.35 billion euro purchase of Sebia with 50 percent equity and 50 percent debt, the banking sources said.
Goldman Sachs and Nomura, which acted as exclusive advisers to Astorg and Montagu in the M&A process, are leading the debt financing which will be shown to investors at a bank meeting on July 8, the banking sources said.
The financing includes a 500 million euro-equivalent, seven-year first lien loan, of which 75 million euros will be denominated in dollars and a 20 million euro, six-year revolving credit facility. Both are guided to pay an interest margin of 350 basis points with a 1 percent Euribor/Libor floor, banking sources said.
There is also a 189 million euro-equivalent second lien loan, of which 100 million euros is denominated in dollars, the banking sources said. The second lien loans have been provided by a Goldman Sachs fund.
The deal totals around 7.3 times Sebia's earnings before interest, taxes, depreciation and amortization (EBITDA) of approximately 94 million euros and lender commitments are due July 22.
The deal marks the second time Montagu has invested in Sebia, after it sold the company to Cinven in 2010 for around 800 million euros.
Sebia, which sells its products to over 110 countries worldwide, has increased its presence in the United States since Cinven took over, with the region now accounting for 21 percent of total revenue. ($1 = 0.7331 Euros) (Editing by Christopher Mangham)