Deutsche Bank and Bank of America are preparing to launch €3.3bn of debt to support Platinum Equity’s purchase of Nestlé’s water division after the summer break, according to 9fin sources.
The debt will take the form of a €2.8bn term loan split between €1.2bn of euros and €1.6bn-equivalent of dollars, plus a €500m revolver, sources said. It should be with investors in early to mid-September.
Deutsche Bank and Bank of America have underwritten the entirety of the debt, but they are now sub-underwriting the financing, opening the deal up to other banks to take on smaller roles, sources added.
Nestlé launched the sale of its water business, which will be called Peranel, earlier this year, attracting interest from sponsors including CD&R, KKR and PAI. Platinum was the only bidder to submit a final offer, as reported.
Deutsche Bank and Rothschild advised on the sales process.
Platinum Equity announced the 50/50 joint venture with Nestlé on 23 July, in a deal that values Peranal at €4.9bn and is expected to close by H1 27.
Peranel will operate 30 brands, including Perrier and S.Pellegrino, across 120 countries.
Potential bidders had explored PIK financing for the deal, as
