Euro Ethnic Foods nets debt to support PAI-led buyout

The €465 million first-lien term loan backing PAI's buyout of Euro Ethnic Foods SA is out to pre-marketing via lead banks Credit Suisse, UBS and Credit Agricole CIB, working with Deutsche Bank, Goldman Sachs, BofA Securities and Natixis, according to market sources.

The first-lien loan comes alongside a €75 million second-lien loan that has been pre-placed ahead of launch by PAI Capital Markets and a €50 million revolver, sources add.

PAI announced the acquisition of Euro Ethnic Foods in November in a deal that will see the private equity firm take a 60% stake, with founder-shareholders Leo and Patrick Bahadourian holding the remainder.

Euro Ethnic Foods operates the grocery section of the Grand Frais Stores in France, Belgium and Luxembourg and supplies grocery products to independent shops.