Twitter LinkedIn
    Tuesday, February 7
    Login
    0 Shopping Cart
    Twitter LinkedIn
    Private Equity InsiderPrivate Equity Insider
    • About Us
    • Digital Events
    • Our Network
      • Reach
      • Sponsors
      • Members
    Private Equity InsiderPrivate Equity Insider
    Home»Deals & Transactions»Platinum Equity Lines Up $3 Billion Debt for Ingram Micro Deal
    Deals & Transactions

    Platinum Equity Lines Up $3 Billion Debt for Ingram Micro Deal

    January 9, 20213 Mins Read
    LinkedIn Facebook Twitter Email WhatsApp
    Ingram Micro CEO Alain Moni outside their offices in Irvine. (Photo by Michael Kitada, Contributing Photographer)
    Share
    LinkedIn Facebook Twitter Email WhatsApp

    Financing includes $1.5 billion loan, junk bond of same size. Debt offering expected to be among the biggest in pipeline.

    Platinum Equity will finance its leveraged buyout of Ingram Micro Inc. with about $3 billion of debt that will be sold to investors, according to people with knowledge of the matter.

    The U.S. private equity firm has lined up a financing package with a group of banks led by JPMorgan Chase & Co. and Bank of America Corp. The debt is comprised of a $1.5 billion seven-year loan, and a $1.5 billion temporary bridge loan, which is expected to be refinanced with secured high-yield bonds, said the people, who asked not to be identified discussing a private transaction.

    JPMorgan is leading the leveraged loan offering, while Bank of America will lead the high-yield bond portion, the people said. Both banks, along with Morgan Stanley, provided committed financing for the purchase of the technology distribution company from HNA Group Co., according to a December statement.

    Ingram Micro is also arranging two credit facilities with its banks: a $3.5 billion five-year asset-backed lending facility, and a $500 million five-year asset-backed lending facility in the form of a term loan, both led by JP Morgan, the people added.

    A representative for Platinum didn’t immediately respond to a request for comment. Representatives for Bank of America, JP Morgan and the company declined to comment.

    Growing Pipeline

    The Ingram Micro debt offering would be among the biggest expected to hit the market in the next few months, with the acquisition due to close in the first half of 2021, according to the statement. Leveraged buyout and acquisition activity is predicted to make a comeback after a dry spell in 2020 as sponsors and companies look to take advantage of cheap financing now that the impact of the coronavirus on their businesses is more certain.

    Platinum is buying Ingram for about $7.2 billion, representing the biggest asset sale from HNA, a company that had one of the biggest corporate downfalls in Chinese history. HNA acquired Ingram Micro in 2016 and is expected to make a solid return on the investment as it strives to delever.

    Moody’s Investors Service placed Ingram Micro’s Ba1 rating, the highest junk score, on review for downgrade on expectations that the company’s debt load will rise due to buyout. Fitch Ratings said it may cut its BBB- rating, the lowest on the investment-grade scale, for the same reason.

    Source: Bloomberg

    Related

    Can't stop reading? This and all news articles are property of their creators, many are not owned or provided by Private Equity Insider. As an event organizer and community platform, we curate content from reliable sources for your suggested reading, and advise you to read the full articles from the referenced authors and sources.

    Acquisitions deals Investments Private Equity Transactions
    Share. LinkedIn Facebook Twitter Email WhatsApp

    Related Posts

    University of California invests $4 bn in redemption-stricken REIT

    January 3, 2023

    Euroclear moves into $9.8 trillion private asset market with Goji buy

    December 21, 2022

    Warburg Pincus acquires K2 Insurance Services from Lee Equity Partners

    December 6, 2022

    CAI raises over $1B for inaugural fund and co-investment programme

    November 18, 2022

    Comments are closed.

    Other Articles

    Ardian launches Real Estate Debt strategy

    March 10, 2022

    Greenbriar Equity Group acquires Oil Changers

    March 8, 2021

    Greasezilla Just Announced Investment from Sheltowee CleanTech Fund for New Site Development

    May 24, 2021

    Ropes & Gray advises Monomoy Capital Partners on Fund IV, with over USD1.1bn in commitments

    January 24, 2022

    Private Equity Insider LLC
    1212 Avenue of the Americas
    New York City 10036
    USA

    [email protected]

    Twitter LinkedIn
    © 2023 Private Equity Insider LLC. All rights reserved.
    • About
    • Terms of Use
    • Cookie Policy
    • Privacy Policy
    • Contact Us

    Type above and press Enter to search. Press Esc to cancel.

    View Cart Checkout Continue Shopping

    Sign In or Register

    Welcome Back!

    Login to your account below.


    Lost password?