The EURO3.675 billion buyout financing for Jefferson Smurfit is in its second sub-underwriting phase. Banks are asked to sub-underwrite EURO75 million with a target hold of EURO45 million for an all-in upfront fee of 125bp. Total debt to EBIDTA is 4.6x, while senior debt is 3.2x. Excluding bridge loans, senior debt is 2.25x.
The EURO2.525 billion senior debt comprises a EURO1.05 billion seven-year term loan A at 225bp over Euribor, a EURO525 million eight-year term loan B at 275bp, a EURO525 million nine-year term, loan C at 325p and a EURO425 million seven-year revolver at 225p with a 75bp commitment fee.
The launch follows a successful first sub-underwriting phase in which nine banks including ABN AMRO Bank, Allied Irish Bank, Bank of America, Bank of Ireland, Credit Lyonnais, HypoVereinsbank, JP Morgan and Lehman Bros, and one other have sub-underwritten EURO350 million for an increased upfront fee of 175bp.