CVC Capital Partners is financing its acquisition of Italian food-ingredients maker Irca SpA with €1.2 billion ($1.4 billion) of high-yield bonds, according to people familiar with the matter. The notes will replace an initial bridging facility provided by Barclays, BNP Paribas, HSBC, and UBS. The debt package also includes a revolving credit facility from the same banks.

The move signals CVC's strategy to refinance the deal with longer-term debt instruments after securing initial funding. High-yield bonds typically carry higher interest rates but offer flexibility for leveraged buyouts. The transaction reflects continued private equity appetite for mid-market European acquisitions, particularly in consumer sectors like food ingredients.

This financing structure allows CVC to extend the maturity profile of its debt, reducing near-term refinancing risk. The revolving credit facility provides additional liquidity for potential working capital needs or integration costs. The deal underscores how financial sponsors are adapting to tighter credit conditions by using hybrid instruments like high-yield bonds to back acquisitions.

The €1.2 billion bond issuance represents one of the larger high-yield transactions in European leveraged buyouts this year, highlighting the ongoing demand for structured credit in private equity deals.