Article/Intelligence
Loscam Refinancing $368M-Equivalent Term Loan Ahead of Potential Sale Process; Targets ~AUD 100M Upsize; ~AUD 3B Valuation for Loscam Would Represent 10.8x Debt to EBITDA
Pallet pooling company Loscam is working with its bank group on a three-year refinancing and 100 million Australian dollars ($65.53 million) upsize of an originally $368 million-equivalent club loan which matures on Nov. 1, ahead of a potential sale of the asset, said a source close to and a source familiar with the matter.
The company, owned by China Merchants Group and private equity firms FountainVest Partners and CITIC Capital, has hired UBS for a potential sale process, said the source familiar and a second source close.
China Merchants Group bought Loscam for $650 million in 2010 and sold a 55% stake to CITIC Capital and FountainVest Partners in 2018, according to media reports.
The asset was among a number of private equity-backed companies that were targeted for sale in 2022, but where processes were put on hold due to interest rate hikes, said the second source close.
The current EBITDA is around AUD 277 million, said the first source close.
The existing three-year club loan, borrowed in November 2021 via China Merchants Loscam (Asia Pacific) Company Ltd. and guaranteed by China Merchants Port Holdings Company Ltd., was in two tranches, of 1.488 billion Hong Kong dollars ($191 million) and AUD 270 million ($177 million), the first two sources said.
Lenders – all titled mandated lead arrangers – were ANZ, Bank of China, Cooperative Rabobank, DBS Bank, E.Sun Commercial Bank, HSBC, Mizuho, Oversea Chinese Banking Corporation and United Overseas Bank. HSBC was the facility agent, the first two sources said.
Blackstone Group, Brookfield, Carlyle Group and KKR have been tipped as potential bidders for the company, which is valued at over AUD 3 billion, according to media reports.
The AUD 3 billion valuation would give a 10.8x debt-to-EBITDA multiple based on EBITDA of AUD 277 million, according to Reorg’s calculations.
UBS, FountainVest and CITIC Capital declined to comment. China Merchants Group could not be reached for immediate comment.
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