U.S. private equity fund Carlyle Group is in talks with banks to refinance AU$1.9 billion in loans used to buy out Australian equipment rental giant Coates Hire Ltd., Reuters is reporting. Carlyle borrowed the money in 2008 to fund its AU$1.7 billion buyout of Coates, its first leveraged acquisition in Australia, sources told Reuters.
Carlyle is one of many private equity funds in Asia that have been in talks to refinance debt, as frozen IPO markets and a lack of strategic buyers have left the funds holding assets longer than planned.
Coates Hire’s debt is not due until 2014, but Carlyle has started refinancing talks early because many banks from the original lender group are either no longer in business or not lending to leveraged deals in Australia.
