Electrical and electronic connector manufacturer FCI, formerly known as Framatome Connectors International, has successfully closed its reworked €642.5m financing backing Bain Capital’s buyout of the company in early April. Banc of America Securities and Goldman Sachs are bookrunners.
The deal initially received a lacklustre response from investors when it launched in November. In response, the leads worked with end investors to tweak the structure to a more acceptable format.
The restructuring worked and the second-lien and the mezzanine pieces both closed oversubscribed. However, the inclusion of pro rata elements drawn in Hong Kong dollars had made banks more wary due to the inability to trade the currency in the European secondary market.
Although FCI is headquartered in France, it has significant Asian operations and required the ability to draw part of the deal in the Asian currency.
The euro-denominated B and C tranches were successfully sold to institutions early in the deal but banks were initially wary of the A tranche, which was reduced to €40m, and, added to €30m of the €100m acquisition facility, the total of Hong Kong dollars is equivalent to €70m. This relatively small tranche was successfully sold and even attracted several new banks into the deal.
Senior debt comprises a €40m seven-year term loan A tranche at 225bp, a €150m eight-year term loan B at 275bp, a €150m nine-year term loan C at 325bp, a €65m term loan D at 550bp, a €85m seven-year revolver at 225bp and the €100m acquisition and capex line at 225bp.
Leverage is 2.2x through the senior debt, 2.6x including the first loss piece, and 3.55x including the mezzanine. The sub-debt comprised a €55m PIK loan paying 1,125bp over Euribor plus warrants and of €154.5m of mezzanine paying 375bp cash, 500bp PIK, plus warrants.
- Bookrunners Citigroup and Morgan Stanley have invited a group of Scandinavian banks to participate as mandated lead arrangers (MLA) in the loan backing the public-to-private buyout of Gambro the listed Swedish medical technology company.
Sizeable MLA relationship-based tickets have been offered, though owing to the confidential nature of the public-to-private transaction, few more details have emerged. This initial phase is likely to wrap up this week.
The senior debt will follow a standard A, B, C structure, though the B and C tranches will be split between several denominations. Subordinated debt will consist of a second-lien and a mezzanine facility.
General syndication will launch in mid-May.