Banks have pitched a total debt package worth up to 7x leverage to support the sale of Italian mobility payments giant Telepass, 9fin sources said, in what is set to be Italy’s biggest leveraged buyout of the year.
Lender education closed last week, sources said, and has drawn significant appetite from both domestic champions and global banks with a strong footprint in Italy.
Potential underwriters have pitched mainly floating rates notes, sources noted, but added that the capital structure remains fluid at this stage.
Direct lenders are also pitching bespoke debt packages to advisors UBS and Mediobanca, sources said, with a private debt solution including a unitranche and potential PIK tranche expected to be levered at around 7x — banks are willing to provide capital between 6 and 7x leverage, noted the sources.
Based on Telepass’ roughly €300m EBITDA, per 9fin sources, this suggests a financing of between €2bn and €2.5bn.
Strong demand from lenders comes as advisors are set to collect the first round of offers by the end of March, according to the sources.
Several private equity funds have shown interest in the bid alongside infrastructure funds. If the latter win, it is likely that the financing will take the form of an infra-like debt, sources noted.
The Italian press has named Advent, Bain Capital and Warburg Pincus as potential bidders.
However, 9fin understands these three funds are not actively pursuing a bid any longer, although they spoke with the advisors in recent months.
Mundys — 57% owned by the Benetton family alongside Blackstone with a 33% stake — and Partners Group are the main shareholders of Telepass, with a 51% and 49% stake respectively.
They are looking at securing a €4bn EV for Telepass, sources said.
The group ended 2024 with a turnover of €435m and €180m EBITDA, according to a report from Il Messaggero. For the period ending 30 June 2025, Telepass’ rolling EBITDA climbed to €235m, the newspaper said.
Initial reports suggested only Partners Group intended to exit the investment, rather than the full sale now in progress. Partners Group acquired its stake from Mundys, formerly Atlantia, in 2020 for a €2bn EV.
UBS, Mediobanca, Bain and Advent declined to comment. Telepass, Mundys, Partners Group and Warburg Pincus did not return our request for comment.
