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Haversham gets £300 million loan commitments to back BCA purchase
By Jennifer Chiou
New York, March 26 – Haversham Holdings plc entered into a new conditional facilities agreement with HSBC Bank plc for £300 million of total commitments, according to a filing with the London Stock Exchange.
The facilities will be comprised of a £200 million term loan facility and a £100 million revolving facility.
The company’s board said it has reached an agreement to acquire the BCA Group of companies, which owns and operates Europe’s largest used vehicle marketplace, in a roughly £1.23 billion deal funded from the proceeds of a placement of shares, a new loan and the issue of stock.
Proceeds will be used for the purposes of refinancing certain existing indebtedness of BCA Group as well as for general corporate and working capital purposes.
The five-year facilities agreement is conditioned on admission of the enlarged share capital to the London Stock Exchange’s main market for listed securities.
Borrowings will bear interest at Libor plus 150 bps to 250 bps.
The filing stated that the enlarged group’s net debt is expected to be about £126.8 million on completion of the transaction.
Haversham’s directors regard the BCA Group as a high quality business with strong foundations and excellent prospects, the filing stated.
The proposed acquisition is consistent with the company’s investing strategy and will take the company into a market in which the board has extensive experience, Haversham said.
The London-based company was formed by Avril Palmer-Baunack and Marwyn, the specialist investment management company, to create value through the acquisition and development of businesses.
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