The €1.28bn facility backing the secondary buyout of Italian speedboat manufacturer
Senior debt comprises a €175m seven-year term loan A at 200bp over Euribor; a €270m eight-year term loan B at 250bp; a €270m nine-year term loan C at 300bp; a €65m earn-out facility, which will remain undrawn until certain conditions are met and splits pro rata across the senior tranches; a €50m seven-year capex line at 200bp; and a €130m seven-year revolver at 200bp.
Pricing on a €120m second-lien tranche was flexed down 50bp to 425bp, with a €200m mezzanine tranche flexed down 75bp to 8.25%. The PIK pays 975bp. Leverage is 4.8x through to the senior tranche and 7x total.
Senior lead arrangers joined on €65m for 100bp, lead arrangers on €35m for 80bp, and arrangers on €20m for 65bp. Some 65% of the B and C tranches have been carved out for funds. Permira is the vendor, although it will retain a junior equity stake in the business.
Permira bought Ferretti for about €633m in 2003 and has presided over a period of strong earnings growth. The facility that backed the original LBO was recapped in a €665m deal by the same two leads in 2005.
The group designs and manufactures luxury motor yachts and speedboats under the brand names Ferretti Yachts, Pershing, Itama, Bertram, Riva, Apreamare, Mochi Craft, Custom Line and CRN.