Cinven has started approaching banks for debt proposals to help in refinancing the firm's GBP 438 million (US$671 million) buyout of Host Europe Goup, an internet domain and hosting company.
Cinven is a leading European private equity firm with offices in London, Frankfurt, Luxembourg, Paris and Hong Kong. The firm signed an agreement with Montagu Private Equity during early July for the acquisition of Host Europe Group.
Host Europe Group boasts around 1.5 million wholesale and retail customers and an outstanding position in the UK and Germany, two of Europe's largest markets. The company's sales have jumped more than 60% since the buyout.
The firm opted to fund the purchase with all equity, with a back-up plan to refinance using debt upon the completion of the buyout. Cinven has now asked a number of banks to submit debt proposals, according to banking sources.
The final debt to equity ratio remains uncomfirmed but bankers predicted it to be split into 60% debt and 40% equity.
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