Mandated lead arranger Rabobank (bookrunner) and joint lead arranger Royal Bank of Scotland have launched syndication of the EURO114 million senior debt financing supporting Europastry’s leveraged buyout of Spanish frozen dough producer Frida Alimentaria. Prior to launch, ING joined the facility as co-arranger.
The facility comprises a EURO71 million seven-year amortising term loan A, which is an acquisition line and refinancing, a EURO28 million seven-year amortising term loan B which also refinances existing facilities and a EURO14 million seven-year revolving credit facility for working capital purposes, all priced at 225bp over Euribor. Leverage on the all-senior debt buyout is 3.9x.
Lead managers committing EURO6 million or more are offered an upfront fee of 55bp, managers taking a ticket of between EURO3 million and EURO6 million will receive 45bp flat and participants committing between EURO1 million and EURO3 million will earn 35bp.
Europastry is the largest frozen pastry producer in Spain, and operates under the Fripan brand name, while Frida Alimentaria holds the number two position in the Spanish market.
Spanish private equity houses Inveralia and Fingalicia have injected equity of EURO40 million towards the EURO172 million acquisition. The financing is due to sign on December 12 and fund on December 16.