JPMorgan and BofA Prepare Leveraged Financing for CVC's IFF Acquisition

✦ Meridian Analysis

JPMorgan Chase and Bank of America are preparing to market roughly $2.4 billion of leveraged loans that will fund CVC Capital Partners’ acquisition of International Flavors & Fragrances’ food ingredients business. The transaction, valued at $4.3 billion, was agreed in May, with IFF retaining a 10 % equity stake in the unit. The banks will split the financing between a euro‑denominated tranche, overseen by JPMorgan, and a dollar tranche of about $1.5 billion, managed by BofA, and will move from pre‑marketing to a broader syndication in the coming weeks. The structure is a classic cross‑border leveraged loan package that provides CVC with the debt capacity to close the deal while allowing investors to take exposure to the consumer‑ingredients sector. CVC’s move follows a series of recent credit arrangements, including the €340 million dividend it negotiated from Exolum. The IFF acquisition adds to CVC’s broader expansion in the ingredients space, complementing its pending debt packages for the bakery‑ingredients supplier Irca and DSM‑Firmenich’s animal‑nutrition division. Deal professionals will be watching for the final pricing of the loan tranches, the exact leverage ratios, and any covenants that may be imposed, none of which have been disclosed. Information on the advisers to CVC, the timeline for closing and any regulatory approvals required also remains private, and will shape the ultimate execution of the transaction.

The Meridian Weekly