Private Equity

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Carlyle to raise $1-B debt to finance acquisition of 95% stake in Hexaware Tech

Mint  

The Carlyle Group is to raise USD 1 billion in debt through an offshore bond issuance to finance the nearly USD 3 billion acquisition of Mumbai-based software services firm Hexaware Technologies. The proposed debt offering by CA Magnum Holdings (CAMH), a special-purpose investment holding firm set up for the deal, has been assigned a B1 rating by Moody's. The proceeds from the proposed bond will be initially kept in an escrow account and will eventually be used to fund CAMH's acquisition of a 95.42% stake in Hexaware. Should the proposed acquisition not proceed as planned, CAMH will redeem the bonds in full along with any accrued and unpaid interest by using the proceeds in the escrow account.