Financial markets in brief

Barclays and Natexis Banques Populaire have been mandated to arrange the recapitalisation of the €208m senior LBO loan that backed Industri Kapital’s secondary buyout of CEVA Sante Animale from PAI in 2003. The 2003 loan was split between a €47m seven-year term loan A at 225bp over Euribor, a €40m eight-year term loan B at 275bp over Euribor, a €20m seven-year acquisition facility and a €15m seven-year revolver both at 225bp over Euribor.

The facility will be used to refinance existing senior debt and repay outstanding convertible bonds as well as providing funds for further expansion. Mezzanine and PIK debt will not be refinanced. Ceva develops, manufactures and distributes animal health products to a variety of clients. Industri Kapital, with management, completed the buyout through Financiere Mendelsshon in 2003.

In 2005, Ceva generated revenues of €279.4m and Ebitda of €39.05m. LTM 2006 senior leverage is 4.2x and LTM 2006 total leverage is 5.1x at close, which will take place later this month.

  • Europe’s stuttering high-yield market received a push last week as further details emerged of the financing behind Eurazeo’s takeover of Europcar. The €3bn buyout of car hire company Europcar will be backed by a bond of around €500m, according to sources close to the deal. Mandated banks are BNP Paribas, Calyon, Deutsche Bank and SG.

Despite last-minute claims from parent Volkswagen that an IPO was still possible, the Paris-based private equity outfit clinched the deal subject to clearance from VW’s supervisory board and competition authorities. As predicted, most of the financing will come via a €2.6bn securitisation backed by Europcar’s vehicle fleet, together with a small portion of senior debt. Eurazeo’s equity input is €900m. The deal will be financed in the short term via a bridge loan and the bond issue is not expected until the second half.

  • Pricing has been flexed down on Symrise’s (formerly Haarmann & Reimer) oversubscribed €862m and US$165m recapitalisation through MLAs Barclays and RBS. EQT is the sponsor. The €40m 9-1/4 year term loan D at 400bp has been cancelled and the B and C tranches have both been increased to €290m. The €290m eight-year term loan B now pays 250bp over Euribor and the €290m nine-year term loan C has also been reduced by 50bp to 300bp. The €112m and US$165m term loan A remains at 225bp over Euribor/Libor, with a €60m seven-year revolver at 225bp and a €100m seven-year acquisition line at 225bp. The €50m 9-1/2-year second-lien tranche has also been flexed down from 550bp to 500bp, and 50bp have been taken off the PIK of the €70m 10-year mezzanine tranche, which now pays cash at 475bps and 4.5% PIK.

The facility recapitalises the €880m facility that Commerzbank and JPMorgan arranged in 2002 to back the buyout of the company.