The reverse flex on the €550m loan backing the secondary buyout of Swedish frozen food group Findus by CapVest has been approved and the deal is being wrapped up by mandated lead arrangers and bookrunners Barclays and Merrill Lynch.
Post two flexes, the debt which comprises Swedish kronor, Norwegian kroner and sterling elements, splits into a £120m seven-year term loan A at 225bp over Libor, a £124m eight-year term loan B at 250bp, a £124m nine-year term loan C at 300bp over Libor, and a £41.3m seven-year revolving credit facility.
There is a £44.7m 9-1/2-year second-lien piece paying 500bp and a £106.6m 10-year mezzanine facility paying 4.875% cash and 4.875% PIK. Leverage is 4.2x through the senior debt and 5.9x total net debt to Ebitda.
In general syndication, a single £15m ticket was offered for a 70bp fee. SG joined the deal as mandated lead arrangers in the sub-underwriting phase, and HSH Nordbank, Islandsbanki and Nordea joined as joint lead arrangers.
CapVest already owns frozen food producer Youngs Bluecrest, which generated net sales of €450m last year.
Pricing has also been reverse flexed on Picard Surgeles’ €880m recapitalisation due to it being substantially oversubscribed. MLAs and bookrunners are RBS and Calyon.
The loan is a recapitalisation of the company’s €913m 2005 facility that backed BC Partners’ secondary buyout of the French frozen food retailer.
The B term loan was flexed down by 25bp. Post-flex the all-senior debt comprises a €350m term loan A at 175bp over Euribor, a €500m term loan B at 237.5bp and a €30m revolver paying 175bp.
Arrangers were invited on tickets of €30m for 60bp, lead managers on €20m for 50bp and managers for €10m for 40bp.
BC Partners bought Picard Surgeles from a consortium comprising Candover, Montagu Private Equity, Chevrillon Associes and Astorg Partners.
Meanwhile, the reverse flex on the oversubscribed €242m all-senior loan backing the buyout of Armacell, the UK-based manufacturer of industrial foam, has been approved and the deal has been funded. Mandated lead arrangers and bookrunners are BNP Paribas, GE Commercial Finance and NICB Bank.
Pricing on the A, B and C tranches was flexed down by 25bp, the margin on the revolver was lowered by 25bp and the second lien by 50bp. The flex also incorporated the movement of €15m from the second lien to the B and C tranches.
Post-flex the facility is split between a a €63m seven-year term loan A paying 200bp over Euribor, a €63m eight-year term loan B at 250bp and a €63m eight-year term loan C at 300bp, a €33m second priority and a €20m seven-year revolver paying 200bp.
Banks joining the deal on €20m tickets paying 75bp are Bank of Scotland, DresdnerKW, ING, KBC, Sumitomo Trust, Invest Credit Bank, DZ Bank and Fortis Bank.