December 6, 2013 / 3:17 PM / 4 years ago

RLPC-Bankers line up debt for Deutsche Telekom's Scout24 sale

LONDON, Dec 6 (Reuters) - Hellman & Friedman’s acquisition of a 70 percent stake in Deutsche Telekom’s classified advertising business Scout24 will be supported by over 700 million euros ($955.96 million) of debt financing, banking sources said on Friday.

Deutsche Telekom announced the sale in November for 1.5 billion euros, almost a year after it said it would look at options for Scout24, a cluster of Internet portals which includes European car trading site AutoScout24 and real estate site ImmobilienScout24.

Barclays, Nomura and RBC are leading the leveraged loan financing which will be presented to investors during the week of January 6 and subsequently sold, the sources said.

The deal, which will be one of the first buyout financings to launch in 2014, is likely to attract significant interest from debt investors eager to do a deal after a lack of M&A activity in 2013.

The financing includes a term loan B totalling 650 million euros and a revolving credit facility. There is also a 50 million euro second lien tranche which has been pre sold to Macquarie, the sources added.

Leveraged totals around 5.7 times Scout24’s earnings before interest, tax, depreciation and amortisation (EBITDA) of approximately 122.5 million euros, the sources said.

Deutsche Telekom, Hellman & Friedman and Scout24 declined to comment.

Deutsche Telekom is looking for cash to fund the expansion of a fourth-generation mobile network that can transport huge amounts of data to cater for the growing number of customers who use smartphones and tablet computers. At the same time it is rolling out a glass fibre fixed network to offer superfast internet to compete against its cable rivals.

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