JPMorgan Chase & Co hopes a $5-billion debt financing package it has put forward will show buyout firms they can borrow enough to structure an attractive deal
The bankers running the sale process for Subway have given the private equity firms vying for the sandwich chain a $5 billion acquisition financing plan, hoping to overcome a challenging environment for leveraged buyouts and fetch the company’s asking price of more than $10 billion, people familiar with the matter said.
The debt financing is based on a mix of loans and bonds and its size is equivalent to 6.75 times Subway’s 12-month earnings before interest, taxes, depreciation and amortization of about $750 million, the sources added. Barclays Plc, a major player in the market for WBS financing, is one of the banks in discussions about long-term financing, the sources said.
To be sure, Subway is allowing bidders to use any financing route they want, as long as they can show they can secure committed financing. The sources requested anonymity because details of the sale process are confidential. Bain, TPG and Advent declined to comment. TDR and Roark did not immediately respond to comment requests. Subway, JPMorgan, Goldman Sachs and Barclays declined to comment.Founded in 1965 by 17-year-old Fred DeLuca and family friend Peter Buck, the company has been owned by the founding families since its first restaurant opened as “Pete’s Super Submarines” in Bridgeport, Connecticut.
Canada Latest News, Canada Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
There's a new way to get to Toronto Pearson Airport for only $10Travellers looking to save a buck or two on transport to Toronto Pearson International Airport have a new way to get to the major travel hub thanks...
Read more »
We tried 5 out of 15 brand-new subs being launched at Subway Canada this monthSubway restaurants across Canada are going to start looking a little different (in the best way) — with a twist on their classic menu that will hav...
Read more »
Families minister says Tory premiers touting child care should ask Poilievre for planOTTAWA — Provincial conservative premiers touting $10\u002Da\u002Dday child\u002Dcare deals with Ottawa is a welcome move, even if some of the leaders now campaigning on the…
Read more »
Families minister says Tory premiers touting child care should ask Poilievre for planProvincial conservative premiers touting $10-a-day child-care deals with Ottawa is a welcome move, even if some of the leaders now campaigning on the deals were among the last to sign them, federal Liberal Families Minister Karina Gould said.
Read more »