CVC to get $3.1 billion credit facility from Barclays for iShares purchase

By Angela McDaniels

Tacoma, Wash., April 9 - CVC Capital Partners Group Sicav-FIS SA's limited partnership, Blue Sparkle LP, will receive $3.1 billion of debt financing from Barclays plc, according to a Barclays news release.

The financing will consist of an approximately $850 million six-year senior secured term loan facility, a seven-year senior unsecured loan facility with a bullet repayment of about $850 million and an approximately $1.4 billion 10-year pay-in-kind vendor loan.

Interest will be Libor plus 400 basis points for the term loan, Libor plus 550 bps for the bullet loan and 7% for the vendor loan.

Barclays has agreed to hold at least 51% of each facility for the first five years and may syndicate the remaining 49% after the first year. The company is allowed to modify some of the financing terms, including pricing of the term loan, at the time of syndication.

The financing will be used to fund Blue Sparkle's proposed acquisition of Barclays' iShares business, which provides exchange-traded funds, for $4.4 billion.

Beginning April 15, Barclays will have at least 45 business days to solicit superior bids for the business from third parties.

The remaining financing needed to complete the acquisition will consist of equity provided by Blue Sparkle.

CVC Capital Partners is a private equity and investment advisory firm based in Luxembourg.

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