EQT Partners AB raised 625 million euros ($815 million) of leveraged loans to back its buyout of EON SE’s waste incinerator unit, according to a person familiar with the matter.
Twelve banks are providing debt to the Stockholm-based private-equity company, said the person, who asked not to be identified because the deal is private. The transaction, which comprises term loans and credit lines, has been arranged by EQT on a club basis, people familiar with the matter said last month.
Officials at EQT didn’t respond to an e-mail and telephone seeking comment on the loan.
EQT’s infrastructure fund agreed to buy a 51 percent stake in E.ON Energy From Waste, which operates 18 waste incineration plants generating electricity and heat for industrial use, in December. EON will retain the remaining shares.
The loans refinance the unit’s existing debt, people have said.
Dusseldorf-based EON completed about 17 billion euros of disposals, more than an initial target of 15 billion euros, it said Jan. 30. European utilities are struggling to cope with weaker demand and a slower economic outlook at the same time Germany plans to exit nuclear energy by 2022.
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