Financing in brief 3

  • McCarthy & Stone is out with the £1.04bn debt package backing its take-private by Bank of Scotland Integrated Partnerships and Management. Bank of Scotland is bookrunner. The debt facilities comprise a £650m 7-1/2-year property loan facility structured as a revolving credit facility paying 175bp over Libor, a £60m six-year term loan A at 225bp, a £70m 6-1/2-year B loan at 275bp, a £70m seven-year C loan at 325bp, a £40m six-year committed working capital facility at 250bp, a £40m 7-1/2-year second lien at 450bp and a £110m eight-year mezzanine paying 5% and 5% rolled up. A bank meeting for the JLA underwriting phase was set for Friday October 27, and a general syndication was expected to follow.
  • Barclays, JPMorgan and Goldman Sachs have won the mandate to arrange the debt backing Blackstone and PAI’s up to £400m secondary buyout of United Biscuits. The debt will launch in the second half of August. The vendors are Cinven, Kraft Foods and Mid Ocean Partners. PAI is also an existing owner but is part buying its fellow owners out as part of this deal.
  • Bookrunner Bank of Scotland is preparing to launch a £282.2m debt package backing Candover’s acquisition of DX Services (DX) and Secure Mail Services (SMS). Senior debt comprises a £34.515m seven-year term loan A paying 225bp over Libor, a £70m eight-year B loan at 250bp, a £70m nine-year C loan at 300bp, a £10m seven-year revolving credit facility at 225bp, a £5m seven-year guarantee facility at 225bp and a £15.485m seven-year deferred consideration facility at 225bp. The subordinated debt, a £20m nine-and-a-half-year second lien piece at 525bp and a £57.2m ten-year mezzanine paying 425bp PIK and 4% cash, have been pre-placed prior to syndication. Senior next debt to ebitda is 4.1x and total leverage is 6x. General syndication of the senior debt will launch on November 2.
  • MLAs ING and RBS are out with the €726m debt package backing Permira’s LBO of Telepizza, a Spanish home delivery and take-away fast food company. Senior debt is split between a €60m seven-year term loan A at 212.5bp over Euribor, a €135m eight-year term loan B at 250bp, a €135m nine-year term loan C at 300bp, a €80m seven-year revolver at 175bp, a €25m seven-year capex at 212.5bp, a €46m two-year cash bridge at 50bp and a €45m two-year property bridge at 175bp. Junior debt is split between a €65m nine-and-a-half-year second lien loan paying 500bp over Euribor, a €100m 10-year mezzanine loan paying 3.5% cash and 6% PIK, and finally there is a €35m PIK loan paying 12%. Lenders are being invited to join on tickets of €45m earning 90bp, €25m for 70bp or €15m for 55bp. Leverage ratios start at 5.1x to senior debt and 7.5x total debt. Permira and the Ballve Family are buying Telepizza for €2.15 a-share of and between €21.97 and €22.18 per convertible bond, translating into a total consideration of approximately €572m. The total equity contribution is believed to be €235.4m.