Rlpc uk prezzo buy backed with 155 mln stg loan

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Nov 11 US private equity firm TPG's takeover of British restaurant chain Prezzo will be backed with 155 million pounds (246.00 million US dollar) of leveraged loans, banking sources said on Tuesday. Barclays and Jefferies arranged the all-senior loan financing which will be shown to investors at a bank meeting this week and subsequently sold in a syndication process, the banking sources said.

TPG agreed the buyout after beating competition from rival buyout firm Advent. TPG's offer of 126.5 pence per share values Prezzo at approximately 304 million pounds, nearly 10 times its full-year earnings from 2013

The loan will be split between a 130 million pound term loan and a 25 million pound revolving credit, the banking sources said. Pricing is yet to be determined but one of the sources added the term loan could be guided to pay around 475 basis points over Libor.

The financing totals around 3.8 times Prezzo's approximate Earnings Before Interest, Taxes, Depreciation and Amortisation (EBITDA) of 34 million pounds, the bankers added. Prezzo is controlled by the Kaye family with a 58 percent stake. The Kayes also founded the Ask and Zizzi chains, sold to Gondola in 2004. Cinven-backed Gondola recently sold its Pizza Express brand to China's Hony Capital for 900 million pounds. (1 US dollar = 0.6301 British pound)