Ista International GmbH increased the loan portion of its 2.3 billion-euro ($3 billion) buyout financing and reduced part of its bond sale, according to two people with knowledge of the situation.
The company’s proposed so-called term loan B due 2020 totals 1.3 billion euros, up from 1.15 billion euros, while the seven-year senior secured bond will be reduced to 350 million euros from 500 million euros, said the people, who asked not to be identified because the transaction is private.
The term loan B will pay an interest margin of 400 basis points, or 4 percentage points, more than benchmarks, the people said. It will be offered to investors at par, or 100 percent of face value. The secured bonds may pay about 5 percent, one of the people said.
CVC Capital Partners Ltd. agreed last month to buy a majority stake in Ista from Charterhouse Capital Partners LLP. The acquisition is also being financed with 525 million euros of senior subordinated securities and a 150 million-euro credit line, according to bond marketing materials. The subordinated bonds may pay about 7 percent, the person said.
Markus Pliessnig, a spokesman for Essen, Germany-based Ista, didn’t respond to an e-mail and telephone call seeking comment on the deal. Phoebe Kebbel, a Frankfurt-based spokeswoman for CVC, couldn’t be reached for comment.