Just open

If the door to the high-yield market is not closed, then it is little more than ajar. With many capital-constrained banks now following hedge funds out of the market, the ability to syndicate deals is sharply diminished.

However, even if only the very brave – or foolhardy – would risk anything but the smallest of launches, commitments are still coming in for existing transactions and bankers say discussions about future sponsor business continues.

Among recent closings, Foodvest has found strong support.

Foodvest allocated its euro and sterling Lion Capital-backed buyout package last week through global coordinator JP Morgan. Lloyds TSB, Rabobank, RBS and SG are all joint bookrunners across the senior and junior debt, and Nordea is joint bookrunner on the senior debt.

Closing just before the deterioration in market sentiment, pricing on an all-euro mezzanine tranche was flexed from 10.50% to 11% with call protection increased from non-call two to non-call three. The senior pro rata piece closed within fees, and an equity carve-out priced at 99.

Debt was split between a £60m six-year revolver paying 300bp over Libor, a £150m six-year term loan A paying 300bp, a £100m seven-year term loan B paying 350bp, a £240m eight-year term loan C paying 425bp and a £180m nine-year mezzanine tranche paying 1,050bp split between 500bp cash pay and 550bp PIK.

Alliance Medical has closed and funded the £372m senior debt package supporting its Dubai International Capital-backed buyout. Mandated lead arrangers and bookrunners are Bank of Scotland and Dresdner Kleinwort.

In addition to the senior debt, there is also a £100m mezzanine tranche, which has also been placed. The loan was first mandated in November last year.

The €445m debt package supporting Doughty Hanson‘s secondary buyout of TMF Group, mandated to MLAs and bookrunners ING and UBS with Bank of Ireland coming in as mandated lead arranger prior to launch, is wrapping up.

Senior debt is split between a €80m seven-year term loan A paying 275bp over Euribor, a €92.5m eight-year term loan B at 325bp, a €92.5m nine-year term loan C at 375bp, a €30m revolver and a €50m acquisition loan. In addition there is a €100m mezzanine loan.

Lenders were invited into the senior debt on tickets of €20m for 140bp or €10m for 115bp. The junior portion had already been placed. TMF is cash generative and aims to reduce its leverage to 3.4x senior over the next year. Furthermore, the equity cheque is a chunky 55%, which gives the senior debt a well-protected place in the capital structure.

Early-bird banks are now in on the £225m debt package supporting Clayton, Dubilier & Rice‘s buyout of Bodycote Testing. Mandated lead arrangers and bookrunners are Barclays Capital, RBS, BNP Paribas and RBC. A wider syndication is expected.

Debt is split between a £46m seven-year amortising TLA paying 300bp over Libor, a £50m eight-year bullet TLB paying 350bp, a £50m nine-year bullet TLC paying 400bp, a £35m seven-year RCF paying 300bp, and a £20m seven-year capex/acquisition facility paying 300bp. A £54m 10-year mezzanine facility pays 450bp cash and 600bp PIK and is NC2/102/101.

Opening net senior leverage is 3.7x and net total leverage is 5.1x.