Lone Star Funds has lined up a circa £425m term loan from Wells Fargo to finance its proposed £700m purchase of Quintain Estates and Development.
Quintain’s look-through loan-to-value ratio is 27% according to its annual report.
If the Lone Star deal completes it would increase the company’s LTV to around 57% based on the offer price of 131p per share.
Quintain’s £204m financing facilities, which include a £115m bond maturing in 2020, will be repaid if the deal goes ahead.
