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Bain to see return on investment with MYOB loan note sale

26 Nov 2012

Bain Capital’s only Australian portfolio company hopes to raise at least $125m of new loans to repay existing debt and return capital to its private equity owner.

The firm picked up accounting software developer MYOB in a A$1.2bn ($1.3bn) deal from fellow buyout firms Archer Capital and HarbourVest Partners in August last year.

MYOB said the sale of five-year subordinated notes would be used to pay back debt taken on by the company during Bain’s buyout, as well as provide Bain with a return on its investment.

Deutsche Bank, Morgan Stanley and UBS have been appointed as Joint Structuring Advisers and Joint Lead Managers for the offer, while ANZ Securities, Macquarie Capital and Westpac Institutional Bank have also been appointed Joint Lead Managers.

Applications must be for a minimum of 50 notes, or A$5,000-worth, and in multiples of 10 Notes, or A$1,000, thereafter.

Company CEO Tim Reed said, “MYOB enjoys strong support from its client base in Australia and New Zealand, and we are pleased to be offering investors in these home markets the opportunity to invest in our business at this exciting stage of its development.”

Bain Capital was believed to be attempting to boost its Australian exposure with a bid for beleaguered Australian surfwear brand Billabong earlier this year.

But the unidentified firm pulled out of takeover talks earlier this year leaving TPG Capital as the sole remaining bidder.

TPG has also since withdrawn its A694m ($714m) offer for the business, causing Billabong’s shares to plummet to a then record low.

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