| LONDON, April 1
LONDON, April 1 The sale of a majority stake of
Eddie Stobart Logistics, the transport and distribution arm of
British freight company Stobart is being financed with
160 million pounds ($266.17 million) of debt, banking sources
said on Tuesday.
The sale of a 51 percent stake in the unit to Isle of
Man-based investment firm DouglasBay Capital, William Stobart
and management was announced last month for 239.7 million pounds
plus 41.1 million pounds in assumed debt.
Stobart, whose clients include Tesco, easyJet
and Aer Lingus Regional, said it would retain
the remaining 49 percent stake in the business.
The deal will be financed with a 160 million pound,
seven-year term loan B guided to pay 500bp over Libor and
offered with a 99 OID, the banking sources said.
The loan is being arranged by Credit Suisse and Bank of
Ireland and was showcased to institutional investors at a bank
meeting in London on Tuesday. Commitments are due April 11, the
banking sources said.
Eddie Stobart Logistics was not immediately available to
comment. Stobart Group declined to comment.
Part of the proceeds of the deal will repay the Group's 100
million pound loan from M&G, Stobart said in a statement.
Eddie Stobart Logistics generated revenue of 475.7 million
pounds in the year ended 28 February 2013, according to its
($1 = 0.6011 British Pounds)
(Editing by Christopher Mangham)