Douglas Raises $2.1 Billion From Loan, Bond Sale for CVC Buyout

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Douglas AG, the perfume retailer being bought by CVC Capital Partners, raised 1.9 billion euros ($2.1 billion) from a loan and sale of bonds as it seeks funding for the acquisition.

The Hagen, Germany-based company raised 1.22 billion euros ($1.36 billion) from the seven-year term loan facility at 500 basis points more than benchmark rates, according to data compiled by Bloomberg. It also sold 635 million euros of seven-and eight-year bonds, the data show.

The retailer sold the debt after twice increasing the size of the loan offer and decreasing the size of the bond sale, according to a person familiar with the talks, who is not authorized to speak publicly and asked not to be identified. It will use the proceeds to fund its purchase by CVC from buyout company Advent International Corp. and the founding Kreke family, a deal that the person said was valued at about 2.8 billion euros.

A company official couldn’t be reached by phone or e-mail for comment on the loan.

Douglas raised the size of the loan by 422 million euros in the past two days, according to the person familiar. It also widened the margin on the covenant-light debt that offers buyers few protections. It cut the size of the seven-year bonds to 300 million euros and the eight-year bonds to 335 million euros, the person said.

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