EQT Said to Seek About $859 Million in Loans for EON Unit BuyoutPatricia Kuo
EQT Partners AB plans to raise about 650 million euros ($859 million) of leveraged loans to back its buyout of EON SE’s waste incinerator unit, according to two people with knowledge of the matter.
The private-equity company is organizing the loan on a club basis without a wider marketing phase, said the people, who asked not to be identified because the deal is private. Commitments from lenders are due today, they said.
EQT’s infrastructure fund agreed to buy a 51 percent stake in E.ON Energy From Waste, which operates 18 waste incineration plants generating electricity and heat for industrial use, in December. EON will retain the remaining shares.
EQT declined to comment on its loan plans.
The financing includes term loans and credit lines and will refinance the unit’s existing debt, said the people.
The deal values the energy generation business at about 1 billion euros, EON has said. The division had 544 million euros of sales in 2011.
Dusseldorf-based EON completed about 17 billion euros of disposals, more than an initial target of 15 billion euros, it said Jan. 30. European utilities are struggling to cope with weaker demand and a slower economic outlook at the same time Germany plans to exit nuclear energy by 2022.