Bloomberg News

3i Proposes Preliminary Terms for Loans to Back Action Buyout

August 18, 2011

Aug. 18 (Bloomberg) -- 3i Group Plc, Britain’s biggest publicly traded private-equity firm, proposed preliminary terms for 375 million euros ($536 million) of senior financing for the buyout of Dutch retailer Action, a person familiar with the situation said.

The deal’s 250 million-euro seven-year term loan may pay interest of 450 basis points more than euro interbank offered rate, said the person, who declined to be identified because the terms are private. A basis point is 0.01 percentage point.

Rabobank International, the bookrunner of the loan, has attracted at least four more arrangers, the person said. They plan to syndicate the financing to a wider group of lenders in the second week of September, the person said.

The acquisition debt represents 3.9 times Action’s earnings before interest, tax, depreciation and amortization, said the person.

Laurie Yeh, a spokeswoman in London for 3i, declined to immediately comment.

3i agreed to buy a majority stake in Zwaagdij-Oost, Netherlands-based Action, which was established in 1993 and has more than 250 stores across the Benelux and Germany, it said on June 30. 3i will help fund Action’s expansion in countries including the Netherlands, Belgium, Germany, according to a statement from the London-based firm.

Guidance for terms of the financing is as follows:

--Editors: Cecile Gutscher, Michael Shanahan

To contact the reporter on this story: Patricia Kuo in London at

To contact the editor responsible for this story: Faris Khan at

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