Market Chatter: Barclays Leads 2.4 Billion Euro Financing Package for Lone Star's ContiTech Acquisition

MT Newswires Live09-09 20:25

Barclays (BCS) is leading a group of lenders preparing a 2.4 billion-euro ($2.8 billion) financing package to support Lone Star Funds' acquisition of industrial-products manufacturer ContiTech, Bloomberg reported Wednesday.

The financing is expected to include a 1.9 billion-euro term loan and a 500 million-euro high-yield bond, according to the report, which cited people familiar with the matter. The term loan will be sold to investors in the leveraged-loan market in US dollars and euros, and the transaction could launch as soon as this month.

In July, an affiliate of Lone Star Fund XIII agreed to acquire ContiTech from Germany's Continental AG for 4 billion euros. The transaction also includes a performance-based element of up to 250 million euros.

Barclays did not immediately respond to a request for comment from MT Newswires.

Shares of Barclays were down 2% pre-bell.

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