3i Group plc (“3i”) announced on 14 November 2019 that it is facilitating a transaction that will provide liquidity to limited partners in EuroFund V, who need to exit as the fund comes to the end of its life, through a sale of their interest in Action to new 3i-managed entities backed by existing investors in EuroFund V, new investors and by 3i.
In support of this transaction, Action has successfully syndicated and allocated an additional €625m Term Loan alongside its existing €2.285bn Term Loan and €125m Revolving Credit Facility.
Proceeds from the additional Term Loan, together with some surplus cash from the business, will finance a total distribution to shareholders of approximately €750m. As set out in our earlier press release, 3i intends to re-invest its share of these proceeds back into Action.
Debt investor demand for the additional Term Loan in syndication was strong and the tranche was significantly oversubscribed. This enabled the pricing of the loan to be tightened in Action’s favour improving upon the initial guidance to market.
The successful outcome underlines the significant growth in Action since 3i, and funds managed by 3i, invested in the Company in 2011. The company is a seasoned issuer in the debt markets having completed repeated financings to date. The strong demand from investors reflects the high level of support for Action’s performance, strategy and management.