European Capital has raised a €400m multi-currency revolving credit facility from affiliates of Wachovia Bank, NA and Harris Nesbitt. Part of the money, which is denominated in Euros, Sterling and US Dollars, will be used to repay €111m of intercompany debts to parent company American Capital in association with the establishment of European Capital, which launched in August 2005. It now has two offices, one in London, the other in Paris. The firm, which specialises in buyouts and mezzanine, is able to make draws under the facility until February 2008, unless a further agreement is reached to prolong it by at most two extra years.
Malon Wilkus, European Capital chairman, said: “With this facility, European Capital has one of the lowest costs of capital in the industry, giving us a powerful competitive advantage. Together with our ability to provide senior debt, mezzanine debt and equity and One Stop Buyouts, European Capital is in an excellent position to invest in the very best European companies.”
So far European Capital has invested approximately €300m in 14 companies, the latest of which is a €22.5m mezzanine investment in Alma Consulting, a French provider of tax recovery and cost reduction services for companies.