Advent International is preparing to syndicate the debt package backing its $4.8bn acquisition of most of Reckitt Benckiser’s home-care division, placing a sizeable tranche with a group of relationship banks before opening the deal to institutional investors, according to a report by Bloomberg.
The Boston-based buyout firm is expected to sell between $500m and $700m of the €/$2.375bn term loan to Middle Eastern, Asian and mid-sized European lenders, according to people familiar with the matter. The relatively conservative leverage profile of the financing means the loan is anticipated to carry higher ratings than typical junk credit, making it an attractive fit for bank balance sheets.
The remainder of the term loan will be pre-marketed to a select pool of institutional investors ahead of a broader syndication launch later this month. The financing also includes a $500m multi-currency revolving credit facility. Citi, Barclays, HSBC, Santander, SMBC, Goldman Sachs and Morgan Stanley are among the banks underwriting the package.
For Advent, the deal is one of the few large-scale European buyouts to reach signing this year, underscoring the tentative recovery in leveraged finance markets after an extended period of subdued M&A activity. The firm agreed to acquire Reckitt’s Air Wick and Cillit Bang brands in a transaction that values the unit at up to $4.8bn, with Reckitt retaining a 30% stake as it pivots to faster-growing consumer health categories.
The debt placement comes as banks and private equity sponsors anticipate a stronger deal pipeline heading into 2026. Goldman Sachs has forecast that next year could prove a record one for global M&A, with other pending financings — including KKR’s £1.75bn debt package for its acquisition of UK-listed Spectris — pointing to a broadening revival in buyout activity.
