Citigroup, First Abu Dhabi Bank and Natixis have underwritten the financing and are expected to sell down the leveraged loan into the term loan B market after the summer.

In July, Abu Dhabi sovereign wealth fund Mubadala agreed to buy a majority stake in Bugaboo from private equity firm Bain Capital.

In 2018, Bain bought Amsterdam-based Bugaboo, which offers products from pushchairs, strollers, car seats to travel systems.

The buyout by Mubadala is expected to help Bugaboo expand into growth markets and strengthen its position as a consolidator in the fragmented baby products industry.

Mubadala is one of the few non-private equity sponsors that taps the leveraged loan market occasionally for its portfolio companies.

Mubadala-owned quick service restaurant franchisee K-MAC raised a US$115m incremental loan in the term loan B market in February.

“Leverage is a way of increasing your returns. If the cashflows make sense, then you use leverage to put less of your own money at risk and make money,” said a lawyer specialising in leveraged finance.

Source: IFR