In brief financial markets

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The fund portions of the £225m loan backing Blackstone‘s secondary buyout of UK restaurant operator Tragus from LGV are heavily oversubscribed already and banks are expected to respond next week. Barclays is the bookrunner. Debt comprises a £70m eight-year term loan B at 250bp over Libor, a £70m nine-year term loan C at 300bp, a £15m seven-year revolver at 225bp, a £40m seven-year capex facility and a £30m 9-1/2-year second-lien tranche at 550bp. Banks will earn 85bp for £20m and 65bp for £12.5m. Total net debt to Ebitda is 5.5x, while senior net debt to Ebitda is 4.5x.

  • Bookrunner SG has launched the €230m recapitalisation of Vestar‘s Italian Salami maker Fiorucci to general syndication. The package is structured as a short-term facility, which will then be taken out by longer term loans once a planned securitisation programme is complete. The initial all senior debt package consists of a €170m 12-month term loan paying 230bp over Euribor, a €40m 12-month unsyndicated bridge paying 175bp and a €20m 12-month revolver paying a drawn margin of 230bp. Once the securitisation is in place, the loan will be replaced by a €80m 7-1/2-year amortising term loan A paying 140bp, a €90m 8-1/2-year term loan B paying 230bp and a €20m 7-1/2-year revolver paying 90bp drawn. Tranche A is fully secured, explaining the relatively low margin. Leverage is 5.2x to total debt and 4.3x excluding the B tranche. Lenders are invited to join on €20m for 65bp and €10m for 55bp. Vestar bought out Fiorucci in 2005 in a deal that was backed by a €295m leveraged loan.
  • Apem is in the market with a €64.5m LBO financing, through MLA SG. Barclays Private Equity France is the sponsor. Debt comprises a €16.5m seven-year term loan A at 225bp over Euribor, a €18.5m seven-year term loan B at 250bp, a €18.5m nine-year term loan C at 300bp and a €6m seven-year revolver at 225bp.
  • Bookrunner KBC has launched the €845m debt package supporting LBO France‘s secondary buyout of Consolis, a Belgian pre-cast concrete group. Prior to launch BNP Paribas, Danske Bank, OKO Bank and SG joined as lead arrangers. Lenders are invited to join as arrangers on €25m for 55bp or as co-arrangers on €20m for 50bp. Senior debt is split between a €176.8m term loan A, a €209.1m eight-year term loan B, a €209.1m nine-year term loan C, a €100m seven-year revolver and a €55m seven-year acquisition line. In addition there is a €28.4m 9-1/2-year second-lien and a €66.6m 10-year mezzanine loan. The junior pieces have already been placed and will not be syndicated further, while the institutional carve-out on the B and C tranches is set at 60%. Initial leverage ratios are set at 4.8x to senior debt, 5x through the second-lien and 5x total. LBO France is contributing €292m, or 29.7% of the total capitalisation.