AutoScout scores strong syndication despite high leverage

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By Owen Sanderson
13 Feb 2020

The syndication of loans to fund Hellman & Friedman’s carve-out of AutoScout24 has seen strong demand, sufficient to support pricing through the tight end of talk on both tranches. The deal has also been recut to squeeze out a larger first lien, cutting the cost of a deal that is among the most levered public issues seen in Europe since the 2007-08 financial crisis.

S&P put adjusted leverage for 2020 at 8.7x to 9.2x, while Moody’s saw adjusted opening leverage at 11x — levels usually only seen in distressed companies with disappointing earnings, cutting the Ebitda side of the debt to Ebitda ratio. European regulatory guidelines, as well as the US Federal ...

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