Financing in brief 2

  • Bookrunner ING is out with the €120m recapitalisation package for Polyamide High Performance (PHP). The company is 58% controlled by CVC and 19.8% by Akzo Nobel. Senior debt consists of a €25m seven-year term loan A paying 200bp over Euribor, a €33.5m eight-year term loan C at 250bp, a €33.5m term loan C at 300bp and a €15m revolver at 225bp. In addition, there is a €13m second-lien loan at 650bp. Leverage ratios start at 3.8x to senior debt and 4.3x to total debt. Launch will follow next month with a bank meeting planned for November 15. PHP’s life in the private markets began in 1999 with the buyout of Accordis from Akzo Nobel. Four of these businesses were later recapitalised as Corsadi and PHP comes from this group and is now being recapitalised separately.The group produces industrial yarns that are used in the production of airbags, tyres and various other high performance applications reinforcing goods such as hoses, ropes and nets. PHP is the largest provider of yarns used in airbags in Western Europe and the second largest for polyamide yarns used in high performance tyres.
  • The €296m add-on to Gerresheimer Glas’s €505m buyout loan of last year has closed hugely oversubscribed and a downward flex is likely ahead of allocations next week, through bookrunners Credit Suisse and JPMorgan. The new debt will add €138m to the B tranche, €138m to the C tranche and €20m to the acquisition capex tranche. Pricing is unchanged and lenders will be paid a 25bp amendment fee. Proceeds fund an acquisition. Last year’s buyout package was split into a €85m seven-year term at 225bp over Euribor, an €85m eight-year term loan at 275bp, an €85m nine-year term loan at 325bp, a €50m seven-year acquisition line and a €50m revolver at 225bp. Additionally there was a €150m bridge to a high-yield bond. The deal funded Blackstone’s secondary buyout of Gerresheimer Glas from Investcorp.
  • The £577m all-senior debt backing Provident Equity Partners’ buyout of retailer Phones 4U has closed oversubscribed, through MLAs Barclays and ING. Prior to launch, Bank of America joined at the top level. The facilities are split into a £100m seven-year term loan A at 225bp over Libor, a £201m eight-year term loan B and a £161m nine-year term loan C at 300bp, a £85m seven-year revolver at 225bp and a £30m seven-year capex line at 225bp. Leverage is 3.1x net debt to Ebitda. Lenders were invited to join on £25m for 85bp or £15m for 70bp. The deal was launched at £617m but the company made a £40m prepayment on the C tranche, reducing it from £201m to £161m.