Bankers eager to finance a buyout of German drugmaker Stada Arzneimittel AG are considering a debt package as high as €6 billion ($6.3 billion), pegging the coveted deal as a bellwether for the market.
Even though Stada’s private equity owners haven’t officially started the sale, the deal may be so lucrative that banks are moving early and at speed, said people familiar with the matter. There’s been a renewed sense of confidence among lenders to underwrite mergers and acquisitions after the success of buyout financings including Worldpay Inc. and Infra Group.
To be sure, the Stada talks are at a very early stage. Bain Capital and Cinven asked banks to pitch for roles on a possible transaction, which could value Stada at €10 billion or more, Bloomberg reported earlier this month. The expectation is that they will soon appoint advisers and launch a dual-track process to either sell the company directly or via an initial public offering, the people said, asking not to be identified because the matter is private.
Spokespeople for Bain and Cinven declined to comment. Stada didn’t immediately respond to a request for comment.Part of the reason that banks are acting quickly is that they’re keen to avoid losing out to private credit, as was the case when HPS Investment Partners swooped in with a €1.5 billion loan package to help fund the buyout of Constantia Flexibles GmbH in July.
In the case of Worldpay and Infra’s debt packages, both were met with strong investor demand and saw the size of the debt offerings increase and pricing tighten. And as market conditions improve, bankers say they’re able to offer more competitive and flexible financing terms. For example, the leverage on deals has been steadily increasing. On Stada, if they secure some €5 billion to €6 billion of debt financing, that would equate to around 5.5 to 6.5 times debt to earnings, based on an approximate €900 million Ebitda. At that size, it’s likely that bankers would tap leveraged loans and high yield bonds in euros and dollars, the people said.
France Dernières Nouvelles, France Actualités
Similar News:Vous pouvez également lire des articles d'actualité similaires à celui-ci que nous avons collectés auprès d'autres sources d'information.
Deutsche Bank Taps 10 Credit Suisse Bankers for Mideast WealthDeutsche Bank AG hired a team of Credit Suisse bankers for the Middle East as the German lender expands in a region where oil wealth has helped swell a burgeoning class of ultra-rich families and businessmen.
Lire la suite »
Ex-Morgan Stanley Bankers Win Coveted Role on Alibaba Unit IPOAlibaba Group Holding Ltd. is turning to a pair of Hong Kong-based bankers it knows well for the initial public offering of its marquee logistics unit.
Lire la suite »
Canucks: How to prepare for the NHL season, with J.T. Miller and Rick TocchetThere was a time when J.T. Miller believed he could start his pre-season buildup with a burst out of the gates in the first pre-season game. “I came ...
Lire la suite »
Toronto police close roads around legislature to prepare for convoy of protestersTORONTO — Roads surrounding Ontario's legislature are blocked off by several police vehicles and city garbage trucks this morning as police say they have intelligence a convoy of protesters is set to arrive in the city.
Lire la suite »
Toronto police close roads around legislature to prepare for convoy of protestersTORONTO — Roads surrounding Ontario's legislature are blocked off by several police vehicles and city garbage trucks this morning as police say they have intelligence a convoy of protesters is set to arrive in the city.
Lire la suite »