Energy transition specialist Amara Nzero is marketing a €270m five-year green senior secured note to help finance its acquisition by private equity Cinven, which was announced in April.
Marketing for the new bond, to be issued via Green Bidco, is slated to last until Wednesday, with pricing expected thereafter.
"It's a small company but it has a pretty strong sustainability angle that may encourage more people to look into it," said one euro high-yield investor.
The issuer is expected to carry ratings of B (stable)/B (positive), with the bond expected to be rated B/B+.
Proceeds from the green note will be used, alongside €537m of equity, to partly finance Cinven's acquisition of a 63% stake in Amara. The equity contribution comprises €336m in cash from Cinven and €201m rollover equity from co-investors and management, according to a company presentation.
The funds from the trade will be held in escrow until the acquisition closes in the third quarter of this year.
The company has a fully undrawn €50m super senior revolving credit facility.
After the transaction, estimated total net leverage will be 4.8x based on adjusted Ebitda of €58m in the last 12 months to March 2023.
Goldman Sachs is (B&D) and joint global coordinator and joint physical bookrunner alongside UBS. They are both sustainability coordinators. Deutsche Bank is joint bookrunner.