Bloomberg News

3i Said to Set Terms on $280 Million of Etanco Buyout Loans

September 14, 2011

(Updates with bank meeting in fourth paragraph.)

Sept. 14 (Bloomberg) -- 3i Group Plc, Britain’s biggest publicly traded private-equity firm, has set terms for 205 million euros ($280 million) of loans to be used to finance its buyout of French building-product maker Etanco, according to a person with knowledge of the situation.

The financing includes an 85 million-euro, seven-year term loan paying an initial interest margin of 500 basis points more than the euro interbank offered rate, said the person, who didn’t want to be identified because the deal is private. A basis point is 0.01 percentage point.

Bank of Ireland has joined Credit Agricole CIB, Credit Mutuel CIC and Societe Generale SA to arrange the senior loans, the person said. Potential lenders are invited to a bank meeting in Paris on Sept. 19, said the person.

London-based 3i will fund more than 50 percent of the cost of the buyout with its own funds as equity while the acquisition debt represents 4.2 times Etanco’s earnings before interest, tax, depreciation and amortization, said the person. IK Investment Partners Ltd. agreed to sell Etanco to 3i in a deal valuing the French company at 370 million euros, two people familiar with the situation said on Sept. 5.

Kathryn van der Kroft, a spokeswoman for 3i, wasn’t immediately available to comment.

Details of financing are as follows:

--Editors: Cecile Gutscher, Paul Armstrong

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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