Goldman, JPMorgan, and UBS lead Golden Goose’s buyout debt

Goldman Sachs Group Inc., JPMorgan Chase & Co., and UBS Group AG are leading a debt financing deal backing a Chinese firm’s acquisition of Italian high-end sneaker producer Golden Goose Group SpA.

The deal could total between €800 million to €900 million ($935 million to $1.05 billion) of debt and other lenders are expected to join the bank group, according to people familiar with the matter who asked not to be identified because the deal is private. 

HSG, formerly known as Sequoia Capital China, agreed to buy the maker of $500 dollar distressed sneakers from private equity firm Permira Holdings LLP, in a deal said to value the company at slightly over €2.5 billion, Bloomberg reported in December. 

The financing is expected to come in the form of high-yield bonds, possibly floating-rate notes, in line with Golden Goose’s previous debt, the people said. 

It is due to launch for investors to buy toward the end of the first quarter, they added, and could attract global high-yield investors, including Asian funds, seeking to play in a high profile brand backed by an Asian owner, one of the people said. 

Singapore-based investment firm Temasek Holdings Ltd will take a minority stake in Golden Goose, and Permira will also maintain a minority shareholding.

Representatives for Goldman Sachs, JPMorgan, UBS, and Permira declined to comment. Golden Goose, HSG and Temasek didn’t immediately reply to requests for comment.

The deal is one of the most prominent purchases of a European luxury brand by a Chinese buyer, and one of the biggest in the sector this year, ahead of Prada SpA’s roughly €1.25 billion acquisition of fashion house Versace.