£500m of debt financing to be raised for sale of insurer Domestic & General

Bankers are finding £500m of debt financing to back the possible sale of home appliance insurer Domestic & General, according to Reuters sources.

Private equity firms including Blackstone, CVC CVC.UL, Clayton Dubilier & Rice and Stone Point Capital have made it to the second round of bidding, with bids due in July.

Planned debt packages would exceed Domestic & General's annual EBITDA six fold, with a mixture of leveraged loans, high yield bonds and mezzanine financing being considered.

The firm's owner, Advent International, has hired Goldmans Sachs to help with the sale, which could raise as much as £1bn.