PAI Said to Hire Three Banks for ADB Solutions Buyout Financing

Private-equity company PAI Partners hired banks to arrange leveraged loans to back its buyout of airfield lighting provider ADB Airfield Solutions, according to three people with knowledge of the transaction.

Bank of Ireland, BNP Paribas SA and UniCredit SA will arrange the senior debt which will be offered to a wider group of lenders, said the people, who asked not to be identified because the matter is private. The loans may total more than 120 million euros ($157 million), one of the people said.

Rosanna Konarzewski, a London-based spokeswoman for PAI Partners, declined to comment on the debt financing.

Brussels, Belgium-based ADB was acquired by Montagu Private Equity LLP in a buyout supported by 73 million euros of loans. ADB provides lighting to airports and was spun out of Siemens AG in 2009.

The financing will include a term loan B portion, which may pay interest at 475 basis points more than benchmarks, the people said. The debt is about 4.5 times ADB’s earnings before interest, taxes, depreciation and amortization, they said. A basis point is 0.1 percentage point.

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