(Bloomberg) -- JPMorgan Chase & Co., BNP Paribas SA and Bank of America Corp. are among banks set to market over €8 billion ($8.8 billion) in debt for UK vehicle glass repair company Belron, with the proceeds to go toward pushing out debt maturities and funding a shareholder payout.
It’s expected to be launched as soon as this month, subject to market conditions, according to people familiar with the matter, who spoke on condition of anonymity because the details aren’t public. The debt will likely consist of both dollar and euro tranches, across a mix of leveraged loans and high-yield bonds, they added.
The deal is set to be one of the largest on record in the European leveraged finance market, which has roared back to life this year amid the prospect of interest rate cuts by both the European Central Bank and the US Federal Reserve. Notably, the deal will also help fund one of the largest-ever dividend payments — traditionally the sign of a market in rude health.
Spokespeople for Belron, JPMorgan, Bank of America and BNP declined to comment.
In a statement dated Sept. 9, D’Ieteren Group, the Belgian holding company that owns 50% of Belron, announced plans to refinance the UK firm’s existing €4.3 billion loans and to raise additional financing of €3.8 billion on a best-efforts basis. Proceeds from the deal will also help Belron finance a €4.3 billion dividend to its shareholders. Among them are buyout firms Clayton, Dubilier & Rice LLC and Hellman & Friedman, Singapore sovereign wealth fund GIC Pte and investment firm BlackRock Inc.
Belron will have net debt of €8.9 billion after the borrowing, D’Ieteren said.
(Updates with context of deal in third paragraph)
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