Key Takeaways
- • JPMorgan Chase and Bank of America are preparing to market approximately $2.4bn in leveraged loans backing CVC Capital Partners' acquisition of IFF's food ingredients business, according to Bloomberg.
- • JPMorgan will oversee the euro-denominated tranche, while Bank of America will manage the dollar portion, potentially worth around $1.5bn.
- • CVC reportedly agreed in May to acquire the food ingredients division at a transaction valuation of $4.3bn, with IFF retaining a 10% stake.
- • Pre-marketing to selected investors is expected before a broader syndication in the coming weeks, as banks seek to distribute underwriting commitments before year-end.
Summary
JPMorgan Chase and Bank of America are preparing to market approximately $2.4bn in leveraged loans to finance CVC Capital Partners' acquisition of the food ingredients business of International Flavors & Fragrances (IFF), according to a report by Bloomberg. The banks are reportedly expected to begin pre-marketing the cross-border financing to selected investors before launching a broader syndication process in the coming weeks.
Under the structure described, JPMorgan will oversee the euro-denominated tranche, while Bank of America will manage the dollar portion, which could be worth around $1.5bn. The figures reported are approximate and remain subject to the syndication process.
CVC reportedly agreed in May to acquire IFF's food ingredients division in a transaction valuing the business at $4.3bn, with IFF retaining a 10% stake. The business supplies texturants, emulsifiers and other specialist ingredients used across the food and beverage industry.
The financing arrives as banks look to distribute underwriting commitments ahead of year-end. Additional debt packages supporting CVC's acquisitions of bakery ingredients supplier Irca and DSM-Firmenich's animal nutrition and health division are also awaiting syndication, reflecting the broader scale of CVC's expansion in the global ingredients sector.
Under the structure described, JPMorgan will oversee the euro-denominated tranche, while Bank of America will manage the dollar portion, which could be worth around $1.5bn. The figures reported are approximate and remain subject to the syndication process.
CVC reportedly agreed in May to acquire IFF's food ingredients division in a transaction valuing the business at $4.3bn, with IFF retaining a 10% stake. The business supplies texturants, emulsifiers and other specialist ingredients used across the food and beverage industry.
The financing arrives as banks look to distribute underwriting commitments ahead of year-end. Additional debt packages supporting CVC's acquisitions of bakery ingredients supplier Irca and DSM-Firmenich's animal nutrition and health division are also awaiting syndication, reflecting the broader scale of CVC's expansion in the global ingredients sector.
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