EG Group privately places £675M bond offering; terms

EG Group Ltd. has privately placed bonds via sole physical placement agent Barclays, while BofA Securities, Deutsche Bank, HSBC, Lloyds, Morgan Stanley and Rabobank are placement agents. The bonds are part of a debt raise that includes a $450 million first-lien term loan (guided at L+425-450 with a 0.5% floor, offered at 99) and a €330 million second-lien term loan (guided at E+700-725 with a 0% floor, offered at 98.5), which are both being syndicated to lenders.

Proceeds from the new financing will principally support the acquisition of a network of 286 petrol station forecourts in southern Germany from OMV Deutschland for €485 million and a network of petrol stations, car washes and ancillary land from British supermarket group ASDA for £750 million.

The company has privately placed the bonds because it recently hired new auditors, and it will take more time for publicly audited accounts to be finished. EG Group is one of the five largest issuers in the S&P European Leveraged Loan Index, or ELLI, based on the amount outstanding. It operates convenience store-based filling stations and was founded in 2001 as Euro Garages Ltd. by brothers Zuber and Mohsin Issa. Terms: