(Bloomberg) -- Banks and direct lenders are competing to provide a total debt package of around $800 million to back a potential buyout of patent software company Anaqua, according to people with knowledge of the matter.
Private equity firm Astorg Partners SAS is looking to sell US-based Anaqua this year, the people said, asking not to be identified discussing a private matter.
Lenders are working off an earnings before interest, taxes, depreciation, and amortization figure of between $80 million and $90 million, some of the people said. On the private credit side, the structure would likely include a unitranche loan of about $600 million, with the option of a delayed-draw term loan and junior financing — a form of riskier debt — on top of that.
Spokespeople for Astorg and Anaqua didn’t respond to a request for comment. Discussions between lenders and potential buyers are at an early stage, and financing plans could still change.
Banks are regaining an upper hand in buyout financing as the Federal Reserve and its peers embark on a rate-cutting cycle. Spreads are getting tighter in the broadly syndicated loan market, which is encouraging banks to underwrite fresh buyout deals.
Last week, Bloomberg reported that banks are providing a €8.65 billion ($9.4 billion) debt package to support CD&R’s bid for Sanofi’s consumer health division. Private credit funds are giving about €1 billion of financing.
--With assistance from Francesca Veronesi and Ryan Gould.
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