October 12, 2017 / 1:14 PM / in 9 months

High-yield bond to back Schenck acquisition

LONDON, Oct 12 (IFR) - A high-yield bond of around €425m will back Blackstone’s acquisition of German measuring technology group Schenck Process, a banker on the deal told IFR.

The banker said he expected the amount to be raised through a single tranche given the size of the financing.

Buyout group Blackstone bought Schenck from private equity investor IK Investment Partners in late September.

IK Investment launched the sale in May and banks have been working on debt financing ever since.

IK acquired Schenck at the height of the buyout boom in 2007 from rival HgCapital for €450m and has tried to sell the business several times over the last couple of years.

Deutsche Bank is leading the bond and more banks are involved.

Proceeds will be used to refinance Schenck’s loan debt.

The banker said the deal could come to the market soon.

“The market’s pretty good and we’re telling most issuers they should seriously think about coming to this window to the extent they have business to do,” he said. (Reporting by Yoruk Bahceli, editing by Julian Baker)

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