Financing in brief

Bookrunners Dresdner KW and Mizuho Corporate Bank and MLA Commerzbank have been mandated to arrange the debt backing the buyout of HC Starck. Bayer has sold the group to Advent and Carlyle for €1.2bn. Bankers said syndication would launch next year affair.The disposal HC Starck, which makes metal and ceramic powders, is intended to help Bayer reduce its debt following its takeover of Schering earlier this year.

  • Cruise and ferry operator Grandi Navi Veloci has launched €550m of secured debt facilities to finance Investitori Associati’s acquisition of the company from Permira and the Grimaldi family. Banca Intesa and Mediobanca are bookrunners, while Gruppo Capitalia and UBM joined as MLAs. Proceeds will also refinance debt and be used for general corporate purposes. The €475m of senior debt comprises a €200m seven-year term loan A priced at 175bp over Euribor, a €130m eight-year B loan at 225bp, a €130m nine-year C loan at 275bp and a €15m seven-year revolver at 175bp. The €80m 9-1/2-year second-lien facility pays 450bp over Euribor. Arrangers can join on €40m, co-arrangers on €25m and banks can participate in the second-lien facility for a €5m commitment. Grandi Navi Veloci had a total turnover of €243m in 2005
  • The £1.815bn of debt backing the tertiary buyout of General Healthcare Group has closed more than twice oversubscribed through bookrunner Barclays. Dresdner Kleinwort, Bank of Scotland and Mizuho Corporate Bank joined as sub-underwriters ahead of launch. The buying consortium comprises South Africa’s Netcare and sponsors Apax, London & Regional and Babcock Capital. Netcare is also putting its UK operations into the company. BC Partners, which acquired the company from Cinven in 2001, is the seller. This financing takes out the £1.995bn bridge loan that Barclays arranged to support the acquisition in June. The debt has an opco/propco structure, with £315m of the debt held at the operating company level and £1.5bn at the property company level. Opco debt comprises a £75m seven-year term loan A at 225bp over Libor, a £80m eight-year term loan B at 250bp, a £80m nine-year term loan C at 300bp, a £40m seven-year revolver at 225bp and a £40m seven-year capex line at 225bp. Some 60% of the B and C tranches have been carved out for funds. Leverage on the opco debt is about 2.7x. Banks are invited into this debt on £17.5m for 75bp and £12.5m for 65bp. The propco debt will have a seven-year maturity and comprise senior and junior tranches, including a commercial mortgage-backed securitisation.
  • Gerflor is out with a €280m debt package backing AXA Private Equity’s buyout of the company from PAI, through bookrunner BNP Paribas. Natixis joined as MLA ahead of syndication. The deal comprises €215m of senior facilities, €20m of second lien and €45m of mezzanine debt.