LONDON, Feb 17 (Reuters) - The acquisition of a majority stake in Vinci’s car parks business by two French financial institutions will be backed with around 1.2 billion euros ($1.64 billion) of debt financing provided by a group of banks, sources said on Monday.
Vinci is in exclusive talks to sell three-quarters of Vinci Park to private-equity fund Ardian - formerly known as AXA Private Equity - and Credit Agricole’s insurance arm for about 1.425 billion euros. The deal values the whole parking division at 1.96 billion euros
Vinci, a French construction and concessions group which is seeking to sharpen its focus on higher-growth businesses such as airport concessions, had publicly confirmed its plans to sell the bulk of the parking-lot unit in November.
Seven banks will provide around 1.2 billion euros of infrastructure loans to back the acquisition. Barclays and BNP Paribas, which advised on the sale, are expected to be included in the line-up, the banking sources said.
The financing is likely to include investment grade five-year facilities split between term loans and revolving credit facilities. Some of the loans will be refinanced at a later stage via the bond market, the sources added.
The loans will be similar to the 1.2 billion pounds ($2.01 billion) of loans used to back Manchester Airports Group’s 1.5 billion pound acquisition of London’s Stansted airport last year. They were investment grade five-year facilities provided by a group of 12 banks. Some of the loans were refinanced with bonds earlier this month.
Ardian declined to comment and Credit Agricole Assurances was not immediately available to comment.
$1 = 0.7307 euros;$1 = 0.5977 British pounds