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Banks prep 500 million pounds loan for HEG's intergenia buy and refinance

Published 19/12/2014, 14:32
© Reuters.  Banks prep 500 million pounds loan for HEG's intergenia buy and refinance
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By Claire Ruckin

LONDON (Reuters) - Banks have lined up around 500 million pounds of leveraged loans to back internet domain and hosting company Host Europe Group's acquisition of German-based peer intergenia and refinance existing debt, banking sources said on Friday.

HEG agreed to buy intergenia on Dec.17 from Oakley Capital Private Equity, part of Oakley Capital Investments (L:OCL) and co-owner Bellaxa for 210 million euros.

Cinven agreed to buy HEG in July 2013 from Montagu Private Equity for 438 million pounds, funding the acquisition with all equity. Part of the equity was refinanced with 255 million pounds of leveraged loans once the buyout was complete in August. The loan was provided by a club of nine banks, according to Thomson Reuters LPC data.

HSBC, Lloyds, Societe Generale and UniCredit are arranging the leveraged loan financing to back the merger of HEG and intergenia and refinance existing debt, the banking sources said.

The loan will be split between a senior term loan and a second lien tranche and will be denominated in euros and sterling, they said.

The loan will launch for syndication in January to investors, they added.

Cinven was not immediately available to comment.

HEG provides for around 1.7 million customers in markets including the UK, Germany, Austria, Switzerland and Spain.

(Editing by Christopher Mangham)

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