Financing in brief 1

  • Pricing on the €547.7m equivalent loan backing UK sponsor MeCom’s buyout of the Norwegian media company Orkla Media has been flexed down after an oversubscription, via MLAs Bank of Ireland, CIBC and SG. The fund tranches were two-and-a-half times oversubscribed, while the bank debt also raised an oversubscription. Margins on the euro-denominated B and C tranches, effectively the deal’s institutional carve-outs, have been reduced by 12.5bp. Post-flex, debt comprises a NKr846.7m seven-year term loan A1 at 200bp over Libor, a DKr211.4m seven-year term loan A2 at 200bp over Libor, a NKr528.4m eight-year term loan B1 at 250bp over Libor, a €64.5m eight-year term loan B2 at 237.5bp over Euribor, a Nkr528.4m nine-year term loan C1 at 300bp over Libor and a €64.5m nine-year term loan C2 at 287.5bp over Euribor, a Nkr593.3m seven-year acquisition and capex line at 200bp over Libor and a NKr395.6m seven-year revolver at 200bp over Libor. Total net debt to Ebitda on the all-senior deal is 4.4x. A single €30m equivalent ticket paying 70bp upfront was offered.
  • Italian aerospace group Avio has reverse flexed pricing on its oversubscribed €2.1bn secondary LBO loan with an oversubscription, via MLAs Banca Intesa (bookrunner), Citigroup, JPMorgan (bookrunner), Lehman Brothers (bookrunner), HVB, RBS (bookrunner) and UniCredito. Cinven is the sponsor. Pricing on the B loan has been flexed down by 12.5bp, the C loan has been decreased by 25bp, the second lien is down 50bp, with the mezzanine flexed down by 75bp. Post-flex, the debt comprises a €200m seven-year term loan A at 200bp over Libor, a €555m eight-year term loan B at 237.5bp, a €55m nine-year term loan C at 275bp, a €300m seven-year revolver at 200bp, a €210m nine-and-a-half year second lien tranche at 425bp and a €280m 10-year mezzanine tranche paying 4% cash and 4.25% PIK. Leverage is 4.7x senior net debt to Ebitda, 5.4x though the second lien and 6.5x total. Banks earn 90bp for €45m and 75bp for €20m. There was also a 60% fund carve-out.
  • The €164m debt package supporting LBO France Gestion’s buyout of airport services group Worldwide Flight Services is finding a strong response in syndication. With all tranches heading for an oversubscription ahead of the November 10 deadline, leads CIBC and ING have flexed down the mezzanine margins. The €30m mezzanine tranche will now pay 950bp, down 50bp from the 1,000bp launch figure. Senior debt is split into a €31m seven-year term loan A paying 225bp over Euribor, a €33m eight-year B loan at 275bp, a €33m nine-year C loan at 325bp and a €50m seven-year revolver at 225bp. In addition there is a €17m 9-1/2-year second-lien piece. Opening senior leverage is 4.1x net-debt-to-Ebitda and opening total net leverage is 5.4x. Equity as a percentage of total capitalisation is 35%. There was a bank meeting in Paris on October 20.