January 16, 2018 / 2:50 PM / a year ago

LPC-Banks line up US$825m of debt for Wyndham’s European asset sale

LONDON, Jan 16 (Reuters) - Banks are preparing debt packages of up to US$825m to back a potential sale of the European rental assets of American hospitality company Wyndham Worldwide , banking sources said.

Wyndham, which owns brands including the Ramada and Travelodge, put its European Rental business up for sale last year following a wider review in August. The business could fetch around US$1bn.

Deutsche Bank and Goldman Sachs are advising on the process.

Final bids are due at the end of January and the sale has attracted interest from a number of buyers including private equity firms Blackstone, CVC and PAI, as well as corporate buyers, the sources said.

Wyndham Worldwide was not immediately available to comment.

Bankers are preparing debt financings to back a successful bid equating to up to 6.5 times the European rental assets’ approximate US$115m Ebitda, the sources said.

The debt is expected to be in the form of senior and second lien loans, denominated in euros, the sources added.

The European business includes assets such as James Villa Holidays and cottages.com. (Editing by Alasdair Reilly)

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