Financing in brief 2

Travelex is closing the amendment to last year’s £602m buyout package that will see £65m of the mezzanine loan cancelled and added to the £110m B/C senior pieces. MLAs are Bank of Scotland, Citigroup and Deutsche Bank. The facility, which is a cost of capital exercise and will not see sponsor Apax take a dividend, is well oversubscribed and will be allocated this week. Mezzanine lenders receive a 100bp contractual cancellation fee.

  • Commerzbank is mandated to arrange a €139m add-on financing for Norma, a clamp and connection manufacturer. Syndication will be launched at the end of October by way of an amendment and waiver, though some new institutions might be approached. Sponsor 3i bought out Norma earlier this year in a deal backed by Commerzbank-arranged debt.
  • Ruhrgas Industries will close its €405m B/C add-on to new money commitments this week, through MLAs CIBC, Deutsche Bank and RBS. The facility is already well oversubscribed. The new facility is equally split between a B loan paying 250bp over Libor and a C loan paying 300bp. Lenders are offered a waiver fee of 12.5bp. Proceeds take out the subordinated debt from last year’s €1.275bn LBO loan and pay sponsor CVC a dividend.
  • Inspired Gaming Corporation’s £116m all-senior loan is on target to succeed after a widened syndication, through bookrunner GE Commercial Finance. The deal was initially launched to a limited number of banks but was widened to attract more institutional investors. The all-senior debt package comprises a £40m seven-year term loan A paying 200bp, a £23m eight-year B loan at 250bp, a £23m nine-year C loan at 300bp, and a £15m seven-year acquisition line and a £15m revolving credit facility both paying 200bp. Proceeds will go towards its AIM listing, which was launched on June 2 2006.
  • Angulas Aguinaga, the Spanish market leader in surimi-based (processed fish) products, has launched its all-senior circa €100m LBO backing its acquisition by Spanish private equity fund Inversiones Ibersuizas. Bookrunner Rabobank and MLA Banesto are leads. Few details have been released, but the structure comprises A and B loans, a revolving credit facility and a capex facility. Only a select group of banks have been invited to participate. The bank meeting has been scheduled for next week.
  • Nursing home chain Medica France’s €622.3m LBO loan has closed heavily oversubscribed through bookrunner RBS. BC Partners is the sponsor. Calyon joined as a MLA ahead of launch. The €496.3m senior debt comprises a €30m seven-year A loan paying 200bp over Euribor, a €145.6m eight-year B loan at 250bp, a €146.7m nine-year C loan at 300bp, a €150m capex/acquisition facility at 225bp and a €25m seven-year revolving credit facility at 200bp. There is also €34m 9-1/2-year second-lien piece paying 5% and a €92m mezzanine piece with undisclosed pricing. Two tickets were offered; co-arrangers can earn 70bp for a €30m ticket and lead managers 50bp for €20m.