The EURO1.225 billion facility backing KKR’s buyout of Demag Holdings from Siemens has launched to general syndication, via mandated lead arrangers CIBC World Markets, HypoVereinsbank and JP Morgan.
Less than EURO200 million needs to be raised in this phase thanks to a successful sub-underwriting phase, during which banks Abbey National, BNL, Commerzbank, Credit Lyonnais, HSBC, KfW, Scotia Capital, WestLB, SG, Bank of Ireland and institutions AXA, Harbourmaster, GECC, ICG and Prudential joined the facility.
Senior lead managers are invited to join in this round on tickets of EURO30 million for 110bp upfront, while lead managers and managers are asked in on tickets of EURO20 million and EURO10 million.
The facility comprises a EURO435 million seven-year term loan A at 225bp over Euribor, a EURO195 million eight-year term loan B at 275bp over Euribor, a EURO195 million nine-year term loan C at 325bp and a EURO400 million seven-year revolver at 225bp, with a commitment fee of 75bp. Total and senior debt to EBITDA is 3.4x.