Investment management firms PAI Partners, ICG and DV France, through the entity HomeVi, have launched €355 million in senior secured notes to finance their acquisition of DomusVi Dolcea, an elderly care service provider in France, according to a statement.
The proceeds from the offering will be held in an escrow account until 30 November 2014, by which date a completion on the sale is expected, and together with an equity contribution from shareholders and cash reserves of DomusVi, will repay certain existing debt and related acquisition costs.
The notes are being marketed from 28 July to 1 August, IFR reported. Goldman Sachs is one of the lead arrangers of the deal, while Deutsche Bank and Natixis are joint bookrunners. IFR said the new paper will sit alongside €304 million of fresh equity in the group and a €45 million privately-placed payment-in-kind note issued out of parent company CasaVita, which ICG is holding.
The new deal will leave the firm with €330 million of net financial debt and a net debt to EBITDA multiple of 4.9x, according to reports. The deal also has a portability covenant, and a 5.5x leverage threshold in the first two years, stepping down to 5x afterwards, it said.
Last month, ICG said it would provide PIK financing and invest as a minority shareholder in DomusVi. The financial details of the transaction were undisclosed at the time, however.
Founded in 1986 by Yves Journal and merged with Dolcea in 2011, DomusVi is one of the leading private operators of nursing and retirement homes in France, with around 200 homes and 15,000 beds.
PAI will become Domus Vi’s majority shareholder with a 59 percent stake in HomeVi alongside Journal and his family, who will reinvest through the intermediary DV Holding, and hold a 26.4 percent stake, while ICG will hold 14.6 percent, subject to clearance from the relevant authorities.
PAI Partners declined to comment. ICG had not responded to a request for comment at time of going to press.