Bank of Montreal Reworks Loan Deal for Warburg’s Everise Stake

  • Banks cut the size of syndicated loan sold to investors
  • Debt structure changed to include a Term Loan A held by banks
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A group of banks led by Bank of Montreal had to rework a debt sale that financed Warburg Pincus’ purchase of a stake in health-care services outsourcing firm Everise after failing to garner enough demand from institutional lenders, according to people with knowledge of the matter.

When buyers balked at a planned $425 million loanBloomberg Terminal B that would pay for a portion of the purchase, the banks reduced the size of the loan sold to investors to $250 million and kept the rest — about $175 million — in the form of a term loan A to offload later, said the people, who declined to be identified as the details are private.