Urbaser Puts Sale on Hold, Taps Debt Market for a Dividend Recap

Shareholders of Spain’s Urbaser SA are set to receive a windfall, as the waste management company kicks off a €2.3 billion ($2.6 billion) debt deal to fund a dividend recap and refinance existing debt, putting a lengthy sales process on ice.

The offering, set to be split between leveraged loans and high yield bonds, launched to investors on Monday. The deal will refinance existing term loans and provide around €1 billion of additional debt to finance the dividend, according to people familiar with the matter, who asked not to be identified because the matter is private.