November 13, 2017 / 10:50 AM / a year ago

LPC-St Hubert €270m buyout loan launches for syndication

LONDON, Nov 13 (Reuters) - Banks have launched a €270m leveraged loan financing to back Beijing Sanyuan Foods Co Ltd and Chinese conglomerate Fosun Group’s €625m acquisition of French margarine maker St Hubert, banking sources said.

Sanyuan and Fosun said in July they had signed an agreement with European private equity firm Montagu to acquire Brassica TopCo S.A. and PPN Management SAS, which are controlling shareholders of St Hubert.

JP Morgan, Societe Generale and UniCredit are leading the loan financing and bank meetings are set to take place on November 14 and November 15 in Paris and London, respectively, to show the deal to investors, the sources said.

Commitments to the loan are due by December 1.

The financing comprises a €260m seven-year term loan B, guided to pay 400bp over Euribor with a 0% floor. An Original Issue Discount is expected to emerge at the bank meetings, the sources said.

The term loan is offered with a leveraged covenant.

The financing also comprises a €10m six-year revolving credit facility, the sources said.

Montagu acquired St Hubert from Dairy Crest for €430m in 2012, backed with a €217m leveraged loan financing from BNP Paribas, Credit Agricole, Bank of Ireland, Commerzbank, ING Bank, Natixis and UniCredit, according to Thomson Reuters LPC.

Set up in 1904, St Hubert reported consolidated net turnover of €129m in the 2016 financial year and has 213 employees. It has more than 40% market share in France and almost 70% in Italy. (Editing by Christopher Mangham)

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