Fraikin joins flex frenzy

After a securing a substantial oversubscription in syndication, bookrunners Deutsche Bank and JPMorgan are out with a structural flex to the €1.22bn debt package supporting CVC’s secondary buyout of Fraikin.

The flex results in a reduction of the €66.4m mezzanine tranche by half with an equivalent increase to the €270m term loan B. The six-year B loan was syndicated on a bookbuild basis and pricing has emerged at 250bp over Euribor, from price talk of between 225bp and 275bp. There is also a €50m revolver, which was syndicated to bank lenders with a 100bp fee. CVC had placed the mezzanine prior to launch of syndication.

In addition to these longer-term tranches the lion’s share of the debt is made up of a €900m borrowing base facility priced at 125bp over Euribor out-of-the-box. Here a €45m ticket was offered with a 50bp fee. This piece is a bridge to a securitisation and is expected to be taken out within a year.