Advent International Corp. plans to raise about $1.3 billion of loans for German chemicals producer Oxea to fund a dividend and repay high-yield bonds, according to two people with knowledge of the matter.
The so-called covenant-light financing includes a $720.5 million and a 200 million-euro ($257 million) 6 1/2-year term loan B, and a $327.5 million seven-year second-lien debt, said the people, who asked not to be identified because the deal is private.
Deutsche Bank AG, JPMorgan Chase & Co., Morgan Stanley and Nomura Holdings Inc. are arranging the financing, said the people.
The transaction will help fund about 500 million euros of dividends to Boston-based Advent, the people said. Lenders are invited to a bank meeting in London on May 17, said the people.
Carolin Amann, a spokeswoman for Advent, declined to comment on the financing.
Oxea was formed in 2007 when Advent bought the Oberhausen, Germany-based company from Celanese Corp. (CE), according to its website. Oxea recorded 52.6 million euros of earnings before interest, tax, depreciation and amortization for the first quarter of the year, compared with 44.5 million euros in the same period of 2012, according to the website.
Covenant-light debt doesn’t carry typical lender protection such as financial-maintenance requirements.
To contact the reporter on this story: Patricia Kuo in London at firstname.lastname@example.org
To contact the editor responsible for this story: Faris Khan at email@example.com