CVC Capital Partners’ potential sale of Spanish private university Universidad Alfonso X El Sabio (UAX) has triggered a financing showdown between private credit lenders and traditional banks, according to a report by Bloomberg.
The report cites unnamed sources familiar with the matter as saying that both groups are in discussions with prospective buyers, including Cinven and a PAI Partners–Providence Equity consortium, to underwrite as much as €1bn in debt.
Financing options reportedly include a private credit-led unitranche package blending senior and junior debt, as well as a broadly syndicated bank loan of up to €900m, including a senior tranche and a payment-in-kind facility. The senior debt would push UAX’s leverage to roughly six times its €115m earnings, rising to eight times including the PIK portion.
