Bank of America and JPMorgan Chase are preparing approximately $2.4 billion in debt financing to back CVC Capital Partners' acquisition of International Flavors and Fragrances' food ingredients business. JPMorgan is leading the euro tranche, while Bank of America oversees the dollar portion, which could total around $1.5 billion. The banks will begin pre-marketing the cross-border leveraged loans to select investors shortly.
The full deal is expected to launch for syndication to a broad investor group in the coming weeks. The financing is among several buyout debt packages waiting to be sold as banks look to take risk off their balance sheets before year-end. Lenders are also sitting on underwrites backing two other CVC acquisitions, Irca and DSM-Firmenich's animal nutrition business.
CVC announced in May it would buy IFF's ingredients unit, valuing the operations at $4.3 billion. IFF will retain a 10% stake. The business produces texturants, emulsifiers and other additives used in food and beverages.
CVC has positioned itself as a formidable player in the ingredients sector, with IFF giving it presence in specialty and clean-label ingredients, while Irca provides exposure to indulgence foods and desserts.
Source: Bloomberg Markets · Summarized by HeadlinesBriefing