Carlyle mulls Coates Hire IPO

Sources have claimed a floatation could raise $516-821 million, but it is not expected to happen before next year as the company's refinancing - likely to be completed by the end of August - means there is no urgent need for additional funds. Carlyle and Seven currently do not plan to offload their 46% stakes in the business via the IPO.

J.P. Morgan, Macquarie Group, Deutsche Bank, and Bank of America Merrill Lynch, all of which are participating in the refinancing, have been promised the right to be joint bookrunners if the listing goes ahead. Commonwealth Bank of Australia would also participate, focusing on retail distribution.

"We continue to review various means of funding the continued strong growth of the Coates Hire business," said Coates Finance Director James Welch.

The debt for Carlyle's A$1.7 billion buyout of Coates in 2008 was provided by ABN AMRO Bank, Allied Irish Banks, Aozora Bank, Bank of Ireland, Landsbanki Luxembourg and WestLB.

A number of private equity firms have been in talks to refinance loans for Australian large buyouts completed during 2006 and 2007.

KKR was previously talking to banks about refinancing debt at Bis Industries, but those discussions came to a halt and the PE firm instead put the company up for sale. CVC Capital Partners, meanwhile, is seeking a new investor for Nine Entertainment, which has $2.9 billion in senior loans due for repayment in February 2013. Hedge funds own the bulk of the debt and are looking to force an equity swap.

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• Topics
• Australasia
• Consumer
• Restructuring
• Australia
• The Carlyle Group
• Consumer
• IPO