Elior SCA, the French catering business owned by Charterhouse Capital Partners LLP, is seeking to raise as much as 300 million euros ($390 million) in a bond sale after getting permission from lenders for the deal.
The company will use proceeds from the senior secured notes to repay a portion of its term loans, according to an e-mailed statement. The seven-year bonds will be issued by Elior Finance & Co. SCA, it said.
Elior is meeting investors starting tomorrow, according to a person familiar with the matter who asked not to be identified because they’re not authorized to talk about it. JPMorgan Chase & Co., Credit Agricole SA, HSBC Holdings Plc and Nomura Holdings Inc., are arranging the sale, the person said.
Lenders approved the company’s plan to issue bonds and extend about 1.7 billion euros of loans, people familiar with the situation said last week. The deal defers the maturities of the loans to 2017, the people said.
Charterhouse owns 62 percent of Bercy Investissement SCA, the company that controls Elior, according to the Paris-based caterer’s website, while Elior co-founder Robert Zolade controls about 25 percent. Bercy is rated B+ by Fitch Ratings, four levels below investment grade, while its senior secured credit facility is rated one step higher at BB-.
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