Stark leans on pandemic proof to sell CVC buyout loan

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By Owen Sanderson
11 Feb 2021

Stark Group’s strong performance amid the pandemic is a crucial selling point for investors looking at buying the €1.35bn loan to fund its purchase by CVC, which agreed to buy the firm from Lone Star in January. The group has added an ESG ratchet to the facility, an increasingly common structure this year, with a margin stepdown if it cuts greenhouse gas emissions.

"There’s a certain group of borrowers who have been somewhat misunderstood historically and who now have the opportunity to use the last 12 months to re-position themselves, by virtue of their performance through the pandemic,," said Murad Khaled, MD, high yield and leveraged loan capital markets at Bank ...

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