LBO France's Médi-Partenaires hopes to raise €385m on high-yield market

Greg Gille
@unquotenews
26 April 2013

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Médi-Partenaires, a French chain of clinics backed by LBO France and Equistone, is understood to be aiming to raise €385m on the high-yield bond market.

In order to refinance the debt arranged as part of its buyout in 2007, Médi-Partenaires mandated Credit Suisse, Crédit Agricole CIB and Natixis to launch a €385m bond offering maturing in 2020, according to local media reports. Standard & Poor's has already given the bond a preliminary B rating.

LBO France backed the tertiary buyout of Médi-Partenaires in 2007, a deal reportedly valuing the business at €600m. LBO France took a 38% stake at the time, with lead vendor Equistone (then Barclays Private Equity) retaining 12% and management upping its stake to 50%. Sagard and Cobalt Capital exited the business as part of the buyout. Senior debt was underwritten by Calyon, with mezzanine provided by ICG.

The business was put up for sale in 2010 with a price tag in the region of €1bn, with Rothschild managing the process. The sale, however, stalled in light of the market conditions prevailing at the time.

European businesses have been able to take advantage of a window opportunity on the high-yield market in recent months, Marlborough partner Jonathan Guise told participants at the EVCA Forum in Geneva last month.