Hellman & Friedman acquires controlling stake in Scout24 for €700M in debt financing
American private equity firm Hellman & Friedman's acquisition of a 70% stake in Scout24 will be supported by over EUR700 million (USD955.96 million) of debt financing.
According to Reuters, German telecom company Deutsche Telekom announced the sale of its classified advertising business in November for EUR1.5 billion. Scout24 is a cluster of Internet portals which includes European car trading site AutoScout24 and real estate site ImmobilienScout24.
Investment banks Barclays PLC, Nomura and Royal Bank of Canada are leading the loan financing. It will be presented to investors during the week of January 6 and subsequently sold, the report said.
The financing includes a term loan B totaling EUR650 million and a revolving credit facility. There is also a EUR50 million second lien tranche which has been pre-sold to banking company Macquarie Group, Reuters said.
The deal will be one of the first buyout financings to launch in 2014. The debt financing totals around 5.7 times Scout24's earnings before interest, tax, depreciation and amortization (EBITDA) of EUR122.5 million, the report said.