B&M Hires Four Banks to Raise $948 Million of Loans for Buyout
B&M Retail Ltd. hired four banks to raise 585 million pounds ($948 million) of leveraged loans to back its buyout by U.S. private-equity firm Clayton, Dubilier & Rice LLC, according to a person with knowledge of the deal.
Bank of America Corp., Credit Suisse AG, Goldman Sachs Group Inc. and Royal Bank of Canada are underwriters of the all- senior financing, which includes 460 million pounds of senior term loans, said the person, who asked not to be identified as the terms are private. The banks plan to market and sell the debt to institutional investors in January.
Clayton, Dubilier & Rice said it won an auction to buy a stake in the British discount retail chain from its family owners on Dec. 3, without disclosing the amount. Terry Leahy, former chief executive officer at the country’s largest retailer Tesco Plc, was appointed chairman, the firm said.
The senior debt represents about 4.25 times B&M’s 110 million pounds of earnings before interest, tax, depreciation and amortization, the person said. A 100 million-pound revolving credit and a 25 million-pound acquisition portion complete the facility, they said.
The company didn’t immediately reply to an e-mail seeking comment.
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