October 18, 2016 / 2:21 PM / a year ago

LPC-Banks line up jumbo loan for Allegro buyout

LONDON, Oct 18 (Reuters) - Banks are lining up a large loan financing to back Cinven, Permira and Mid Europa’s US$3.25bn acquisition of Polish e-commerce businesses Allegro and Ceneo, banking sources said on Tuesday.

The private equity trio agreed to buy Allegro and Ceneo from South Africa’s Naspers, it was announced on October 14.

Banks including Goldman Sachs and Societe Generale are lining up the financing, which has attracted a large number of international and local banks eager to be on the deal, the banking sources said.

Although the full bank list has not been finalised yet, around 10 banks could be in the final line up, which is also expected to include BNP Paribas, ING and UniCredit, the banking sources said.

The majority of the financing will be senior secured loans denominated in local currency, Polish Zloty. There could also be a subordinated loan or bond, denominated in euros, the banking sources said.

Although the loan will attract some institutional investor attention, it is expected to largely appeal to the banks, given the geography and currency, the sources said.

Cinven and Mid Europa declined to comment. Permira was not immediately available to comment.

Naspers acquired online marketplace Allegro in 2008 for US$1.5bn, using it to establish other fast-growing businesses in Poland, such as e-commerce site OLX and payment platform PayU.

Naspers will keep OLX, PayU, Otomoto and Otodom and said its PayU unit will continue to provide payment processing services to Allegro under a multi-year agreement. Ceneo, sold along with Allegro, is a Polish price comparison business. (Editing by Christopher Mangham)

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