CD&R Excludes Debt-Funded Equity Option From Final Sanofi Bid
- Banks committed over €1 billion of debt to fund part of equity
- Consumer business could be valued at €15 billion in a sale
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Clayton Dubilier & Rice made it a condition for banks to commit more than €1 billion ($1.1 billion) of debt to fund a part of the equity check for its bid for Sanofi’s consumer-health division, though the facility didn’t end up in the final package presented to the pharmaceutical firm.
The New York-based buyout shop had asked lenders to offer the so-called back leverage facility in order to get a place on the acquisition financing, according to people familiar with the matter, who asked not to be identified because the process is confidential. Back leverage is a type of loan that buyout shops can obtain to finance part of an equity investment in a specific company.