Banks struggling to sell Capvest loan financing acquisition of Grimsby salmon processor to Karro.
Reuters say that sources have told it that banks have established a loan syndicate and have invited institutional investors to participate in the deal. However, the interest is not so keen and they have been unable to “find price point they can agree on”.
Barclays is financing with Goldman Sachs and RBC, which equates to around 4.5 times Young’s approximate GBP 70m Ebitda, it said.
But they are finding it tough selling the GBP 305 million leveraged loan financing underpinning CapVest Partners’ acquisition of Young’s Seafood from Lion Capital.
Reuters added that “the loan was underwritten on an all-senior basis, banks are now considering including a junior position to make the deal move attractive to investors”.
“If you keep flogging a deal it is hard to get people to engage but Young’s Seafood has seen pretty good trading so that could help to re-engage people and find a level,” a banker told the news organisation.
Karro Food Group – which has been owned by CapVest since March 2017 – bought Britain’s largest seafood business in July.