Back in July, Apax said it would acquire Primary Packaging Plastics and Centor US Holding Inc. from Gerresheimer AG. Centor, based in Ohio, makes pharmacy packaging. While Apax did not share deal terms, it said the two units together were valued at €1.5 billion.
People familiar with the transaction, who requested anonymity because it is private, said banks plan to assemble roughly €1 billion ($1.2 billion) of borrowing. The package will likely be set up as leveraged loans consisting of term loans plus a revolving credit facility, and is expected to be syndicated to institutional investors later this year. A bank lineup is set to be confirmed shortly.
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An Apax spokesperson declined to comment, and representatives for Centor and Primary Packaging Plastics did not immediately respond. Debt financing for M&A has started to pick up, a tailwind for Wall Street lenders hungry for high-fee underwriting. This deal adds to a growing queue of buyout loans awaiting syndication, among them a £5 billion financing supporting EQT AB's planned acquisition of Intertek Group Plc. If you hold bank stocks with investment banking exposure, the revival in deal lending is the trend to watch.