Lpc barings vistra buy backed with $700m leveraged loan

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Hong Kong-based Baring Private Equity Asia's acquisition of a majority stake in trust and custodial services provider Vistra Group will be backed with a $700 million cross border leveraged loan financing, banking sources said on Tuesday. Baring agreed to buy a majority stake in Vistra in May from IK Investment Partners, for an undisclosed sum, with management holding a significant stake.

Goldman Sachs is leading the financing, alongside Credit Suisse, Jefferies and DBS Bank. Bank meetings are scheduled to take place in London on July 8 and New York on July 9 to show the deal to investors, the sources said. The loan market has been caught in the volatility brought by the Eurozone crisis, with a number of repricings withdrawn in recent weeks. However, loan investors say they still have appetite for strong credits and for event-driven financings, so long as they are launched at the right pricing and terms.

The Vistra financing comprises a $515 million first-lien loan and a $185 million second-lien loan, both denominated in euros and dollars, with the exact split still to be determined. There is also a revolving credit facility. Pricing will emerge at the bank meetings, the sources said.

Baring declined to comment. Vistra Group employs over 1,300 employees in 46 offices across 35 jurisdictions.