Buhrmann rights issue approved

Shareholders of Dutch office products supplier Buhrmann have approved the terms of its forthcoming €248m rights issue. The move is part of a wider US$520m deal to purchase preference shares held by equity sponsors Apollo Group and Bain Capital.

The rights issue will see Buhrmann issue 39m new shares at €6.37 each, with Deutsche Bank acting as sole bookrunner and heading the underwriting syndicate. Buhrmann had previously envisaged selling around 43m shares at a price of €5.82.

The new terms are equivalent to a ratio of two new shares for every seven existing shares. The record date for the rights issue is March 14, the rights will trade from March 15 to March 23, with trading in the new shares expected to begin on March 31.

Buhrmann has already completed a US$150m high-yield bond for the same purpose. The 10-year, non-call five B2/B rated issue printed with a 7.875% coupon at 99.151 to yield 8%, the wide end of 7.5% to 8% guidance.

The senior subordinated 144a bond was issued through Buhrmann US, a unit of the Amsterdam-based firm.