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Lead banks work to shift Evonik unit loan

July 19/2019

MOSCOW (MRC) -- Lead banks are in talks with private debt funds and family offices to shift excess paper on a 1.8bn buyout financing for German chemicals group Evoniks methacrylates plastics unit, Madrid, that they are stuck with and are considering launching a second syndication process, banking sources said, said Reuters.

Evonik agreed to sell its clear acrylic sheet unit to Advent International for EUR3bn in March, backed with a EUR1.785bn-equivalent euro- and dollar-denominated leveraged loan financing.

It was increased by 21m prior to closing in June, to cover some of the issue discount on the loan after it priced at 500bp over Euribor/Libor at 95 OID, having struggled during syndication as investors shy away from cyclical businesses.

It is unclear how much of the loan the arranging banks were stuck with prior to close but at one point it was EUR500m, sources said.

The lead banks on the deal Barclays, Deutsche Bank and Goldman Sachs are now coordinating the sell down process and are holding talks with private debt funds and family offices, to offload the paper.

Advent was not immediately available to comment. It is unusual for underwriters to approach this money directly but it has become more commonplace of late on difficult deals that havent found a natural home with CLOs and credit funds the typical buyers of syndicated leveraged loans.

In June, Bank of Americal Merrill Lynch sold to direct lenders a EUR300m term loan backing Platinum Equitys acquisition of a majority stake in Spains frozen fish producer Iberconsa.
Author:Anna Larionova
Tags:petroleum products, petrochemistry, Crude oil, Evonik.
Category:General News
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