Investment

GEMS Education to meet banks for $1.65 billion refinancing

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Last week, GEMS Education said that a consortium led by private equity firm CVC Capital Partners has agreed to acquire a 30 per cent stake in the company from existing shareholders.

Monday 15, July 2019 BY MUZORIWA KUDAKWASHE

GEMS Education is set to meet with banks in London and New York this week to discuss refinancing worth $1.65 billion, reported Reuters.

The Dubai-based academic group refinancing includes a $850 million loan, $500 million in secured bonds and euro-denominated bonds worth $300 million.

GEMS appointed Goldman Sachs and Credit Suisse as global coordinators for the financing, while Citi and HSBC are bookrunners.

In a statement, GEMS said that with CVC Capital-led deal, the academic group will take on a further 14 private schools in Europe through the acquisition of Britain's Bellevue Education.

The acquisition will allow the exit of a consortium led by Farj Capital which includes Tactical Opportunities funds managed by Blackstone Group and Bahrain's Mumtalakat.

Malaysian sovereign fund, Khazanah Nasional will retain a three per cent stake while the Varkey family will remain the largest shareholder in GEMS once the deal is completed.

GEMS recently invested in a portfolio of 14 schools in Saudi Arabia and four schools in Egypt through joint ventures.

TAGS : GEMS Education , CVC Capital, Goldman Sachs, Credit Suisse, Citi, HSBC, Khazanah Nasional

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