Bidders Eye €800 Million Debt to Fund Deal for Acqua e Sapone

Potential bidders for Italian discount retailer Acqua e Sapone are mulling debt packages of around €800 million ($851 million) to fund a buyout from owner H.I.G Capital, according to people with knowledge of the matter.

Bidders, which include private equity firms CVC Capital Partners and TDR Capital, are likely to opt for bridge-to-bond financing, a package that’s intended to be replaced in future with high-yield bonds, the people said. That’s because there are strict regulations around issuing leveraged loans in Italy.

H.I.G., which acquired Acqua e Sapone in 2021, is exploring a sale, the people said, asking not ...