PAG Asia Capital has lined up A$900 million ($577 million) worth of senior-debt financing for the purchase of bar owner Australian Venue Co., according to people familiar with the matter.
(Bloomberg) — PAG Asia Capital has lined up A$900 million ($577 million) worth of senior-debt financing for the purchase of bar owner Australian Venue Co., according to people familiar with the matter.
The package comprises of a A$700 million five-year bank loan and a A$200 million six-year lending from credit funds, the people said, asking not to be identified as the matter is private.
KKR & Co. said on Friday that it’s selling a controlling stake in Australian Venue, the owner and operator of 200 pubs and bars, to the Asian buyout firm with the deal expected to close late in 2023. Bloomberg News had previously reported parties were close to finalizing a deal worth about A$1.4 billion.
Credit Agricole SA, ING Bank NV, Natixis SA, Nomura Holdings Inc., RBC Capital and Sumitomo Mitsui Financial Group Inc. are underwriting part of the bank loan. ANZ Group Holdings Ltd., National Australia Bank Ltd. and Westpac Banking Corp. have committed to the bank loan on a take-and-hold basis.
The underwriters are planning to syndicate more than A$100 million at a later stage. The A$200 million institutional loan tranche will offer a spread of 475 basis points over the Australian bank funding rates, the people said.
The A$700 million bank loan is split into an amortizing tranche and a term loan tranche. The margin on the former is 400 basis points while it’s 425 basis points for the term loan portion, the people said.
PAG declined to comment on the details when contacted. The Australian Financial Review on Thursday reported on the financing, without a pricing breakdown.
PAG’s latest acquisition adds to its growing portfolio in Australia’s restaurant sector, which includes Red Rooster and Chicken Treat.
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