Private equity firm Bridgepoint is poised to refinance Diaverum, Europe’s largest independent renal care service providers. A bank meeting is due to take place next week, according to Reuters.
Bridgepoint has mandated Commerzbank, Credit Agricole CIB, GE Capital, JPMorgan and RBS as bookrunners to arrange the debt needed to refinance its existing loans. Bridgepoint mandated JPMorgan last year to explore options for the company. This new debt could involve both bonds and loans, reports suggested.
The company's existing debt comprises €708 million of senior facilities and €176 million of subordinated debt.
The private equity firm does not plan to pay itself a dividend following the refinancing, according to Bloomberg. Senior leverage following the refinancing is expected to be below 5x while total leverage will be about 6.5x, the reports said.
A spokesman for Bridgepoint confirmed that a refinancing process was underway but declined to comment further on the process, or on reports that the private equity firm is looking to exit its investment in the business subsequently.
Bridgepoint is expected to sell the business later this year, Reuters said, adding the firm is seeking a portability clause in the new debt package to allow loans to remain in place if Diaverum changes hands.
Private equity firms Bain, Nordic Capital, BC Partners, KKR and Advent will likely be targeted, reports suggested. Fresenius Medical Care, the world’s largest provider of dialysis treatment, also indicated its interest in the company in February.
Daiverum, headquartered in Sweden and with 250 clinics worldwide, was bought by Bridgepoint in 2007. The buyout firm is understood to have used about SKr 5.2 billion (€564 million; $785 million) of debt to finance the acquisition.