Spanish debt fund manager Oquendo Capital has underwritten a €20 million mezzanine financing packaged for Monbus, Spain's third largest bus operator.
The deal was financed using capital from Oquendo's second fund, which held a first close on €112 million earlier this year beyond its €100 million. The fund remains open to new commitments, and has a hard cap of €150 million. It is currently 30 percent invested across three deals, the firm said in a statement announcing the deal.
Oquendo said the €20 million mezzanine loan would be used to fund Monbus' expansion plans. The company, which was founded in 1972 in North-west Spain, plans to expand into other parts of Spain. It has managed to achieve EBITDA growth in each of the last five years, and is now delivering revenues of €130 million.
The deal offers an excellent risk-return profile, a source close to the firm said, with senior-like risk but high mezzanine returns. It is one of the largest private debt deals completed in Spain by a local, independent team, the source added.