Carlyle seeks $1.9b Coates Hire refinancing

Two sources told Reuters that Carlyle is looking for money in order to protect itself against a long wait for an exit. Although the investor only acquired Coates in 2008, and would not yet have been expected to sell the asset, frozen IPO markets and a lack of trade buyers have left PE firms in the region holding onto acquisitions longer than the usual five years.

The debt for the A$1.7 billion buyout was provided by ABN AMRO Bank, Allied Irish Banks, Aozora Bank, Bank of Ireland, Landsbanki Luxembourg and WestLB. Though it is not due for refinancing until 2014, many banks from the original consortium are either no longer in business or not lending to leveraged deals in Australia.

A number of private equity firms in Asia Pacific have been in talks to refinance loans in recent months. KKR was previously talking to commercial banks about refinancing debt at Australia's Bis Industries, but those discussions have come to a halt and the PE firm instead put the company up for sale. KKR is liable to pay back the A$905 million ($922.06 million) in leverage it borrowed to buy Bis six years ago by June 2013.

• Tweet  
• Facebook  
• LinkedIn  
• Google plus  
• Save this article  
• Send to  

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