Blackstone's Intertrust Expects to Raise $537 Million in IPO

  • IPO proceeds will be used to pay down some existing debt
  • Sale is sixth to be announced for Euronext Amsterdam in 2015

Blackstone Group LP’s Intertrust NV, a provider of legal and corporate services, plans to sell shares in an initial public offering in Amsterdam, expecting to raise about 475 million euros ($537 million).

The proceeds will be used to pay down a portion of its existing debt facilities, Intertrust said in a statement Monday. Existing shareholders may also sell part of their investment, the company said. Blackstone owns about 74 percent of the business, with the rest held by employees and management.

“Access to the capital markets will give us added financial flexibility to take advantage of opportunities during an important period of consolidation in our sector,” David de Buck, chief executive officer of Intertrust, said in the statement.

Blackstone, the world’s biggest manager of alternative assets, agreed to buy Intertrust in December 2012. The New York-based company oversaw $333 billion of private equity, real estate, credit assets and hedge funds as of June.

The Intertrust IPO is the sixth to be announced for Euronext Amsterdam this year and would be the fourth-biggest so far if it raises 475 million euros. Hal Holding NV’s Grandvision NV raised $1.3 billion earlier this year. All could be dwarfed by a sale of shares in ABN Amro Group NV, the state-owned lender that may IPO before the end of 2015.

Consolidation Wave

“Intertrust is a big player with a good name, though their line of business is quite opaque,” said Jos Versteeg, an analyst for Theodoor Gilissen Bankiers NV. “There’s political pressure on companies offering trust services. By going public, the company could come out on top in a likely wave of consolidation.”

The Netherlands’ lenient fiscal policies and extensive network of tax treaties has fostered a sizable industry in the country of so-called trust firms. Among its services, Intertrust sets up mailboxes for multinational companies, often by providing them with an address at its own offices. Trust firms also provide non tax-related services, such as bookkeeping and payroll administration.

Amsterdam-based Intertrust posted sales of 296 million euros last year and adjusted earnings before interest, taxes and amortization of 122 million euros. Deutsche Bank AG and UBS Group AG are acting as joint global coordinators and joint bookrunners in relation to the Offering. ABN Amro, Morgan Stanley and JPMorgan Chase & Co. are acting as joint bookrunners and Berenberg as co-lead Manager. Lazard is acting as financial adviser to the company and shareholders.

An Intertrust spokeswoman declined to comment on possible timing of the sale.

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