Lenders have entered into a commitment letter to provide Harp Bidco Limited with a multicurrency revolving facility for its acquisition of Hargreaves Lansdown.
In an update this morning (September 23), Bidco announced that RCF Lenders, which includes Barclays Bank, HSBC, Lloyds Bank Corporate Markets, Mizuho Bank, and MUFG Bank, entered into a commitment letter to provide a multicurrency revolving facility for the acquisition of Hargreaves Lansdown.
This will be available after the completion of the acquisition for, among other purposes, the general corporate and working capital purposes of the group.
Bidco also announced that, together with the commitment letter, the RCF Lenders entered into a fee letter and a conditions precedent status letter.
It comes after Hargreaves Lansdown accepted a takeover bid from a private equity consortium last month, which includes the Abu Dhabi sovereign wealth fund.
Hargreaves Lansdown announced the consortium, named Harp Bidco Limited and made up of CVC Advisers, Nordic Capital and Abu Dhabi Investment Authority subsidiary Platinum Ivy had reached an agreement on an offer.
The offer consists of a cash deal of £11.10 per share and a 30 pence dividend which the board of directors called ‘fair and reasonable’ and values the company at £5.4bn.
Last week, new lenders joined the private equity consortium to fund the transaction.
These included HPS Investment Partners, KKR Credit Advisors, Apollo Global Management and Blackstone Credit.
tom.dunstan@ft.com
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