Bloomberg News

Blackstone Plans 500 Million-Euro Jack Wolfskin LBO Loan

June 30, 2011

(Updates with interest margin in second paragraph.)

June 30 (Bloomberg) -- Blackstone Group LP, the world’s largest private-equity firm, got 500 million euros ($724 million) of underwritten financing to bid for German outdoor clothing retailer Jack Wolfskin, according to a person familiar with the situation.

The senior leveraged loans include 420 million euros of seven-year term debt targeting loan funds that pays initial interest of 450 basis points more than the euro interbank offered rate, said the person, who declined to be identified because the deal is private.

Bank of America Corp., IKB Deutsche Industriebank AG, Morgan Stanley and UBS AG have underwritten the loans, the person said. They invited potential early participants to a meeting tomorrow in London, the person said.

Helen Winning, a Blackstone spokeswoman in London, didn’t return a phone call and an e-mail seeking comment.

The name Jack Wolfskin was inspired partly by Jack London’s “Call of the Wild” and the howling of wolves employees of the company imagined could be heard in the distance of Canadian campfires, according to its website.

Jack Wolfskin’s owners, Barclays Private Equity and Quadriga Capital, started exclusive talks with Blackstone to sell the Idstein, Germany-based company and aim to complete negotiations in the third quarter, according to a statement on June 17. Jack Wolfskin may be sold for about 700 million euros, two people familiar with the talks said on June 17.

Jack Wolfskin increased revenue by 21 percent in the year ended September 30, to 304 million euros, as customers bought more jackets and hiking shoes. Sales have gained more than 10 percent for seven consecutive years, it said in February.

A basis point is 0.01 percentage point. Details of the financing are as follows:

--Editors: Cecile Gutscher, Michael Shanahan

To contact the reporter on this story: Patricia Kuo in London at pkuo2@bloomberg.net

To contact the editor responsible for this story: Faris Khan at fkhan33@bloomberg.net


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