Article/Intelligence
Adevinta Suitors Permira, Blackstone Consider Preferred Equity From Vendors to Bridge Valuation Gap; Blackstone Pushes for Credit Arm Role in Senior Debt
Relevant Documents: Q2 2023 Report Adevinta Press Release Schibsted Press Release Adevinta suitors Permira and Blackstone are considering taking preferred equity from shareholders Ebay and Schibsted to support the delisting of the Norwegian classifieds business, sources told Reorg. Among direct lenders assembled to provide unitranche financing to back the deal, Blackstone Credit is likely to be given one of the leading financing roles given its connection to the private equity arm. The bidders are looking for additional capital from the vendors to help bridge the valuation gap, sources added. Ebay and Schibsted have both made statements pledging to sell their shares to the consortium, as reported. The financing structure is still fluid but the vendors could provide around 1.5x leverage or €1 billion, one source added. Adevinta is expecting to generate up to €650 million EBITDA in 2023, according to its second-quarter report. Blackstone is keen to have its own private credit arm involved in the transaction, sources said. This is a practice that has become more common in recent years as private credit arms finance larger buyouts and move into the same market as their PE colleagues, one source said. Blackstone Credit previously financed a buyout by its PE[...]