Sonepar ups loan for Hagemeyer buyout

Industrial Distribution staff -- Industrial Distribution, 2/20/2008 11:36:00 AM

French electrical distributor Sonepar increased the loan it plans to use to fund its purchase of a stake in Dutch competitor Hagemeyer, the Reuters news service reported.

The loan was raised from about $2.1 billion to roughly $2.4 billion after closing oversubscribed, and will be signed on Friday, unnamed sources told the news service.

Sonepar and French rival Rexel plan to split Hagemeyer between them once Rexel’s proposed takeover goes through.

Under the terms of the deal, Sonepar would land the Dutch distributor's assets in the United States, Canada, Mexico, Australia, Switzerland, Austria, Sweden, China and Southeast Asia.

To satisfy European anti-trust regulations, the French companies would swap Rexel’s German operations for Sonepar’s Swedish business.

Rexel's share of the deal is set to be financed by a $7.94 billion debt package.

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