Providence in single-asset restructuring for HSE24

A filing with the Austrian competition authority stated that ICG is to acquire a majority stake in HSE24. ICG co-invested in the vehicle along with Providence, and the GP's existing LPs are also being given the option to invest.

The rationale behind the restructuring is to create a liquidity event for LPs in Providence VI.

Providence invested in HSE24 via its sixth fund, which held a final close in June 2007 on $12bn. The deal valued HSE24 at around €560m. According to Unquote Data, LPs in the fund include US-based pension funds such as California State Teachers Retirement System, which committed $700m to the fund, as well as Oregon Investment Council, which committed $300m. The fund was fully deployed as of June 2016.

There has been no change in the company's debt structure as part of the single-asset deal.

Ardian continued to own a minority stake in HSE24 after Providence bought a majority stake in the company in July 2012 in a deal valued at around €650m, supported by a €265m all-senior debt package from Citi, DZ Bank, UBS, Unicredit and ING.

Unquote sister publication Mergermarket cited reports that Providence had mandated Bank of America to look into potential options for a sale or an IPO in 2017, but that the flotation plan was abandoned in 2018. The company had been valued at $1.5bn in 2017.

Providence and Ardian declined to comment on the situation. ICG had not responded to a request for comment at the time of publication.

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