RLPC-Warburg Pincus rounds up banks for Safetykleen buyout loan

LONDON, May 7 (Reuters) - US private equity firm Warburg Pincus [WP.UL] is finalising the group of banks arranging a syndicated loan that will finance its 565 million pounds ($1.11 billion) buyout of UK-based Safetykleen Europe, banking sources close to the deal said on Wednesday.
ING and Lloyds TSB will join Royal Bank of Scotland in arranging the fully undewritten loan, which totals around 300 million pounds, according to sources.
The loan carries one of the highest leverage ratios seen this year of around 6.5 times, bankers said. Banks bid aggressively to provide the financing, as industrial cleaning company Safetykleen is considered a strong credit, the bankers said.
Warburg Pincus bought Safetykleen from JP Morgan Partners. As part of a secondary buyout, management will continue to hold a minority stake in the company, Warburg Pincus said in a statement.
"This is a serial performer business and we have secured attractive credit facilities," Warburg Pincus managing director Peter Wilson told Reuters LPC.
Safetykleen sells machines to customers in the automotive and industrial sectors, with services including component cleaning and degreasing, spraygun cleaning and hazardous waste management.
The deal is expected to complete in June, Warburg Pincus said.
http://in.reuters.com/article/privateEquity/idINL0747659420080507