In brief financial markets 2

The €524.7m financing backing 3i’s buyout of heavy transport shipping operator Dockwise has launched, via bookrunners Lehman Brothers and Unicredit and MLA Fortis Bank. Debt comprises a US$190m eight-year term loan B at 250bp over Libor, a US$190m nine-year term loan C at 300bp, a US$60m seven-year revolver at 225bp and a US$40m capex facility, which converts into a B and C tranche in equal measure upon drawing and is priced as such. Additionally, there is a US$65m 9-1/2-year second-lien tranche at 475p over Libor and a US$135m 10-year mezzanine tranche paying 9.75%. Total net debt to Ebitda is 5.3x. While syndication is heavily targeted at institutional investors (as can be seen by the lack of an A tranche), a limited number of banks have been invited to join on US$25m for 65bp upfront.

  • Bookrunners Banc of America Securities and Goldman Sachs have launched a €240m add-on B loan priced at 250bp over Euribor for Bain backed FCI. The facility will replace the mezzanine, second lien and PIK elements of last year’s buyout financing of the French electronic connector manufacturer to create an all-senior structure. An existing revolver is also being reduced from €85m to US$75m. The new B loan is priced at 250bp and is made up of €182m and US$76m. In contrast to the existing A tranche none of the new or existing B loan is denominated in Hong Kong dollars. The redundant tranches are being taken out at par plus prepayment fees and all existing investors are being offered a 20bp waiver fee. Bain is not taking a dividend.
  • Bookrunners BNP Paribas and CIBC World Markets have launched the €382.5m facility backing sponsor Investcorp‘s secondary buyout of Armacell International, a German manufacturer of specialist engineered foam products. The facility is made up of a senior €50m seven-year term loan A paying 225bp over Euribor, a €102.5m eight-year term loan B at 250bp, a €102.5m nine-year term loan C paying 300bp, a €30n seven-year revolver at 225bp, a €30m seven-year acquisition line at 225bp, a €33.75m 9-1/2-year second-lien tranche paying 475bp and a €33.75m 10-year mezzanine tranche paying 4.25% cash and 4.75%. Investcorp agreed a deal in December to buy the business from sponsors Gilde and CVC Capital.
  • Madison Dearborn backed US-listed, but German-headquartered, dental equipment maker Sirona‘s €275m and US$300m financing, has closed oversubscribed via bookrunners JPMorgan and UBS plus MLAs Commerzbank and UniCredit. The five-year facility is split between a €275 term loan, a US$150m term loan and a US$150m revolver. All tranches pay 75bp over Euribor/Libor, ratcheting along a leveraged grid. Banks will earn 30bp for US$50m and 22bp for US$25m.