LONDON, Nov 2 (Reuters) - Banks have lined up around €1.25bn of leveraged loans to back private equity firm CVC Capital Partners’ acquisition of Netherlands-based business services firm TMF Group, banking sources said.
Doughty Hanson agreed to sell TMF Group to CVC for €1.75bn, ending its plans to list on the London Stock Exchange.
TMF Group was advised by Goldman Sachs and HSBC and both banks are leading the debt financing that is set to launch for syndication to investors in the coming weeks, the sources said.
The debt financing comprises a €900m first-lien loan, a €225m second-lien loan and around €150m of undrawn facilities, the sources said.
The loan is expected to be well received in Europe’s leveraged loan market where demand has far outweighed supply since last year and event-driven financings are in high demand.
TMF provides financial, legal and administration services for multinationals.
In June CVC Capital raised €16bn for its latest fund for private equity investments in Europe and North America.
Low interest rates and cheap debt have contributed to a boom in private equity fundraising since the financial crisis, supported by investors’ thirst for high-yielding alternative assets. (Editing by Christopher Mangham)