Business Investment

GEMS Education to meet banks for $1.65 billion refinancing

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Monday 15, July 2019 BY Kuda Muzoriwa

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.

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.

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