Banks and private credit lenders are competing to provide up to €6.5bn ($6.8bn) in debt financing for Adevinta ASA, as its private equity backers, Blackstone and Permira, explore options to optimise the company’s capital structure, according to a report by Bloomberg.
The report cites unnamed sources familiar with the matter as highlighting the Blackstone and Permira are considering multiple scenarios, with the primary objective of refinancing or repricing Adevinta’s existing €4.5bn debt. The company may also raise an additional €2bn, potentially to distribute as a dividend to shareholders.
Blackstone and Permira acquired Adevinta in 2023 in one of Europe’s largest private credit-backed leveraged buyouts. The current debt negotiations reflect shifting market dynamics, as private equity sponsors assess whether to continue relying on direct lenders or turn to banks for cheaper financing.
With M&A activity subdued, banks are eager to secure deals like Adevinta’s, even as dividend recapitalisations — once frowned upon for increasing leverage — are now more widely accepted in a deal-starved environment.
Among the financing options under consideration are: a repricing of the existing debt by some of Adevinta’s current private lenders; a full refinancing by banks, which would then syndicate the debt to institutional investors; and a hybrid structure incorporating both a term-loan B facility and private credit, similar to the refinancing approach used for Ardonagh Group last year.
Adevinta’s current debt, sourced from around 20 lenders, carries a 575-basis-point margin over Euribor with an original issue discount at 98.
