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DUBAI, July 14 (Reuters) – Dubai-based GEMS Education meets banks in London and New York this week to discuss a $ 1.65 billion refinancing, according to LPC , a fixed income information service built into Refinitiv.
GEMS, which owns and operates 49 schools in the United Arab Emirates and Qatar, said last week that a consortium led by private equity firm CVC Capital Partners had agreed to acquire a stake of 30 % in the company from existing shareholders.
The company also announced it has launched a refinancing plan including loans and bonds, without giving further details.
According to LPC, the refinancing of GEMS includes a loan of $ 850 million, secured bonds of $ 500 million and bonds denominated in euros worth $ 300 million.
Goldman Sachs and Credit Suisse are the global funding coordinators, while Citi and HSBC are the bookrunners, LPC said, without giving any source.
GEMS declined to comment when Reuters contacted Sunday.
With the agreement of the CVC consortium, the company will hire 14 more private schools in Europe through the acquisition of Bellevue Education in Britain, announced GEMS last week.
The purchase of CVC will allow the exit of a consortium led by Fajr Capital Ltd, which includes Tactical Opportunities funds managed by Blackstone Group and Mumtalakat Holding Co. of Bahrain.
The Malaysian sovereign wealth fund Khazanah Nasional Berhad will retain a 3% stake and the Varkey family will remain the largest shareholder of GEMS once the transaction is finalized.
GEMS recently invested in a portfolio of 14 schools in Saudi Arabia and four schools in Egypt through joint ventures. (Reportage of Davide Barbuscia and Stanley Carvalho, edited by Raissa Kasolowsky)
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