Terra Firma to refinance Tank & Rast's €2.1bn debt

The refinancing is likely to amount to an estimated 9x EBITDA and include senior bonds and PIK notes.

The buyout firm has appointed Morgan Stanley earlier this year to advise on refinancing the German company's debt.

Tank & Rast operates around 350 petrol stations and 390 motorway rest stops, which include 50 hotels. The business was founded in 1994 and privatised in 1998, when German airline Lufthansa, Allianz Capital Partners and Apax Partners acquired the firm for €913.24m. The transaction included a €608.83m debt package, according to unquote" data.

Terra Firma then bought Tank & Rast in 2005 in a €1.035bn transaction, which included €350m of equity. The GP is reported to have refinanced the business in 2006 and paid itself a dividend, which increased the debt load to €1.2bn, according to Reuters. 

In June 2007, Terra Firma sold a 50% stake in Bonn-based Tank & Rast to RREEF, the global alternative investment management business of Deutsche Bank's Asset Management division.

Terra Firma and Tank & Rast declined to comment.

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