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Latham Advises CVC, GBL Consortium, and Respighi on Groundbreaking €7.58 Billion Financing for the Voluntary Tender Offer for Recordati
November 5, 2026
Finance and Capital Markets teams advise on record-setting financing on the largest leveraged buyout in Europe announced in 2026 to date, consisting of a senior secured bank financing, Holdco PIK notes financing, and senior secured high-yield bond issuance for pharma company Recordati.
Latham & Watkins LLP has advised CVC, GBL, Respighi HoldCo S.p.A., as senior borrower and bond issuer, and Respighi Investments S.à r.l., as PIK issuer, on a highly complex financing in connection with their acquisition and take-private of Italian pharmaceutical company Recordati, listed on the Euronext Milan. The acquisition has been carried out through a voluntary tender offer on all the shares of Recordati.
The financing for the acquisition comprises several instruments, including (i) €6.05 billion fixed and floating rate senior secured bridge facilities, which were in part utilized to finance the acquisition consideration at first settlement of the tender offer on November 2, 2026, and will be utilized to finance the acquisition consideration at second settlement of the tender offer on November 17, (ii) a senior secured €850 million revolving facility and hollow term facility A (not used), (iii) an €11 billion guarantee facility with respect to the issuance of cash confirmation letters in connection with the tender offer, and (iv) a privately placed €1.53 billion pay-if-you-want PIK toggle notes financing. The financing has also involved the issuance of several series of high-yield euro and US dollar denominated senior secured floating rate and fixed rate notes under New York law (144A/Reg S) for an aggregate principal amount of approximately €6.05 billion (equivalent) and maturities in 2031 and 2033.
The transaction represents the largest leveraged buyout announced in Europe in 2026 to date. The bond issuance represents the largest ever high-yield bond-only LBO financing in Europe, the largest ever bond financing for a single B issuer in Europe, and the largest ever high-yield bond offering by an EMEA healthcare issuer.
The Latham Capital Markets team was led by partners Francesco Lione and Paolo Bernasconi, with associates Michele Vangelisti, Edoardo Picchi, Yao Lin, and Filippo Turci.
The Latham financing team, as to English law matters, was led by partners Charles Armstrong and Julie Van der Meersche, with associates Khayam Amin, Avtar Singh Rai, and Charlotte Hoggarth.
The Latham financing team, as to the legal structuring, the cash confirmation guarantee facility, the related Italian take-private financing matters, and matters of Italian law on the financing, was led by partners Marcello Bragliani and Erika Brini Raimondi, with associates Francesca Parisini and Lorenzo Suzzi, and trainee Giovanni Briscese.
Advice was also provided on regulatory matters by Milan partner Cesare Milani, with associates Edoardo Cassinelli and Telmo Iriondo.