EQT’s SSP to raise £500m in IPO

Alongside the offer of new shares by SSP, the flotation will also allow the company's existing shareholders – including EQT, management and senior employees – to realise part of their stakes.

SSP plans on using the proceeds from the offer of new shares to pay down debt. A package of £1.1bn was put into place at the time of EQT's acquisition. The company expects its debt to sit in the £450m mark at admission, equivalent to 2.87x underlying EBITDA for the year ending March 2014.

The business plans on refinancing its remaining debt by arranging new term loan facilities totalling £510m, as well as a revolving credit facility of £75m.

Goldman Sachs and Morgan Stanley have been appointed joint sponsors and global coordinators, as well as joint bookrunners alongside Bank of America Merrill Lynch and Jefferies. Nomura and Shore Capital are acting as co-lead managers.

EQT acquired the business in July 2006 in a deal valued at £1.2bn, according to unquote" data. The firm invested via its €2.5bn EQT IV fund, as well as providing mezzanine financing via its €189m EQT Expansion Capital I vehicle.

Mizuho Corporate Bank, Desdner Kleinwort and Morgan Stanley acted as lead arrangers for the senior and mezzanine debt facilities put in place for the deal. According to unquote" data, Intermediate Capital Group also provided mezzanine financing for the deal.

In April 2009, SSP was reported as being in talks with its lenders as falling commuter numbers at the time led to concern that the company was in danger of breaching its covenants. According to unquote" at the time, the group's operating profit fell drastically in 2008, resting on £5.3m after achieving £19.5m in 2007.

In June of the same year, reports began to surface that EQT was planning on injecting up to £100m of fresh equity into SSP, having already provided £20m in equity in March. The firm was attempting to encourage lenders to ease the terms of SSP's hefty debt burden, due to the threat of a £30m interest payment looming in July of that year.

Headquartered in London, SSP operates more than 1,900 branded food and beverage outlets at almost 570 sites across 29 countries, including 125 airports and 271 railway stations where most of its revenues are generated.

The company's portfolio of represented brands include Starbucks, Burger King, M&S Simply Food, Millie's Cookies and Uppercrust.

SSP generated revenues of £1.8bn for the year ending September 2013, as well as an underlying EBITDA of £152.7m. The company employs 30,000 staff.

At the time of EQT's acquisition in 2006, SSP employed 22,000 staff and generated revenues of £1.1bn, according to unquote" data.

The company's CEO is Kate Swann.

• Tweet  
• Facebook  
• LinkedIn  
• Google plus  
• Send to  

• Topics
• UK / Ireland
• Consumer
• Exits
• IPO
• United Kingdom
• EQT