Banks line up £1.8 billion to finance TDR's OCU deal as debt sale readies

Who is arranging the debt

Banks have arranged roughly £1.8 billion to support TDR Capital's purchase of OCU Group and are getting ready to put the loans into the market, according to people familiar with the plans. The buyout financing has been backstopped by Barclays Plc, Jefferies Financial Group Inc., Deutsche Bank AG, and Lloyds Banking Group Plc, with additional banks likely to join ahead of the syndication to institutional buyers.

What is being sold

The pending offering features a euro term loan B sized at the pound equivalent of £1.115 billion, plus £190 million of delayed draw term loans, also in euros, the people said. It also includes sizable undrawn facilities, with about £360 million in guarantees and £175 million of revolving credit available.

Market backdrop and company footprint

Triton Partners agreed last month to sell OCU to TDR, and this financing would be one of several buyout loans coming to a volatile market. Another package in the queue is around €1.5 billion ($1.7 billion) of junk-rated debt for Cinven's acquisition of Theramex. OCU's revenue reached £1.2 billion during the year to April 30; in the year to April 2022 it was £295 million.

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Why it matters for investors

OCU operates in both regulated and unregulated segments of energy and infrastructure, spanning power networks, renewable generation paired with storage, services for water and the environment, and digital infrastructure. Its footprint spans the UK, Australia and New Zealand, and it maintains engineering support in India. The bottom line: a large, euro-heavy loan stack for a fast-growing contractor is coming to market at a time when risk appetite is being tested. Representatives for TDR and Lloyds declined to comment, as did those for Barclays and Deutsche Bank, while OCU and Jefferies did not immediately respond to requests for comment.

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