BC Partners Cote buyout backed with 140 million pound loan

By Claire Ruckin

LONDON (Reuters) - Banks are arranging leveraged loans totalling around 140 million pounds backing private equity firm BC Partners’ acquisition of a majority stake in UK restaurant chain Cote, banking sources said.

BC Partners agreed to buy the stake for an undisclosed sum from CBPE, which bought a majority stake from management in 2013, it was announced on July 14.

Reuters reported earlier in the week that the sale totalled around 250 million pounds.

GE, HSBC and Lloyds are leading the leveraged loan financing which is scheduled to launch for syndication to institutional investors next week, the sources said.

The financing comprises a 108 million pound term loan B and 30 million pounds of undrawn loans, including a revolving credit and capital expenditure facility, the sources said.

The financing totals around 4.5 times Cote’s earnings before interest, taxes, depreciation and amortisation (EBITDA) of approximately 24 million pounds.

BC Partners was not immediately available to comment.

Cote was founded in 2007 by restaurateurs and now employs more than 2,700 people in 67 restaurants, most of which are outside London.

(Editing by Tessa Walsh)