JPMorgan, Goldman Sachs Prepared to Offer Staple Financing Levered at 6.5x for Techem; Macquarie, KKR Infrastructure, CVC, Brookfield Preparing NBOs for Company at 12x-14x €500M EBITDA

  Relevant Documents: Q3 Report Q3 Presentation Reporting: Nick Krause, Maryna Irkliyenko, Oscar Laurikka JPMorgan and Goldman Sachs are prepared to provide staple financing of 6.5x leverage for German metering company Techem, sources told Reorg. The banks are looking to provide senior debt at 5.75x comprising a mixture of loans and bonds and another 0.75x of junior debt, with the possibility of PIK notes for the junior portion, sources said. The proposed financing is a soft staple as bidders will be able to work on their own solutions, the sources added. Banks’ leveraged finance desks have traditionally funded the company, but various options are still on the table including infrastructure style debt, sources said. Macquarie, KKR Infrastructure, Brookfield and CVC Capital Partners are preparing to submit nonbinding offers for Techem by Dec. 14, sources said. A shortlisting of bidders is scheduled to take place in early January, the sources added. Partners Group is seeking a valuation multiple of 16x Techem’s marketed EBITDA of about €500 million, sources said. However, the potential bidders are more likely to offer a multiple of 12x to 14x, the sources added. Based on Fundamentals transaction database by Reorg, similar service companies with recurring revenue were[...]