Lpc dutch raet completes 300 mln euro loan

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Dutch payroll and human resources software provider Raet has successfully raised 300 million euros ($332.46 million) of leveraged loans to refinance existing debt and pay a dividend to owner CVC Capital Partners, banking sources said. CVC bought Raet, formerly known as Getronics Human Resources Solutions, from AlpInvest and Advent in 2011. After a strong performance, CVC decided to extract some value from Raet, via an approximate 100 million euro dividend payout, sources said.

The deal was well received by the loan market, despite growing macro volatility caused by Greece, and a 280 million euro term loan B (TLB) closed at initial guidance to pay an interest margin of 425 basis points (bp) over Euribor, the sources said.

The TLB allocated on Europe's secondary loan market on July 1 at a slight discount of 99.75 percent of face value, offering some value to investors buying the deal. It is expected to trade up, sources said. The financing, which also comprised a 20 million euro revolving credit facility, was led by BNP Paribas, alongside mandated lead arrangers ABN Amro and Rabobank.

CVC was not immediately available to comment. Raet employs around 1000 people and had a turnover of 147.9 million euros, according to CVC's website. Since its acquisition Raet has paid down debt and delevered to around 3.2 times debt to earnings from 5.25 times. The new deal releverages the company back to 5.25 times, the sources said. ($1 = 0.9024 euros)