CVC Plans €1.2 Billion of High-Yield Bonds to Fund Irca Buyout

CVC Capital Partners plans to fund its buyout of Italian food-ingredients maker Irca SpA using €1.2B ($1.4B) of high-yield bonds, per people familiar with the matter. The deal structure points to meaningful use of leverage, but no financial performance or guidance details were provided to imply upside or downside for cash flows.

Analysis

CVC Capital Partners plans to fund its buyout of Italian food-ingredients maker Irca SpA using €1.2B ($1.4B) of high-yield bonds, per people familiar with the matter. The deal structure points to meaningful use of leverage, but no financial performance or guidance details were provided to imply upside or downside for cash flows.