The syndicate that signed the EURO250 million refinancing facility for Friedr Flender via mandated arranger Dresdner Kleinwort Wasserstein and sub-underwriting arrangers Commerzbank and WGZ Bank comprises co-arrangers Lloyds TSB Bank and Rabobank, lead managers Credit Lyonnais and Landesbank Sachsen, manager Sumitomo Trust and participant Investkredit Bank. In addition, two institutional investors were also brought into the deal.
The EURO250 million facility is split into a EURO75 million six-year term loan A1 at 200bp over Euribor, a EURO15 million equivalent six-year term loan A2 at 200bp, a EURO50 million seven-year term loan B at 250bp, a EURO60 million unsyndicated six-year revolver C1 at 200bp with a 75bp commitment fee and a EURO50 million six-year revolver C2 at 200bp with a 75bp commitment fee. Co-arrangers providing the top ticket of EURO20 million were offered a 20bp upfront fee.
Proceeds were used to refinance the DM390 million senior debt that backed Friedr Flender’s 2000 buyout by CVC Capital Partners from Babcock Borsig. The borrower has tentative plans for an IPO or unit spin-off and the original DM390 million loan, which was led by JP Morgan and WestLB, stipulated that the proceeds from any IPO must be used to repay the loan. This refinancing was put in place to give the company increased flexibility.