LBO Syndications


Target nation: UK

Date announced: 29/08/08

Acquirer: CD&R

Total value: £417m

Arranger: Barclays

Financing: £255m

Bodycote Testing has been relaunched to syndication. In September the deal went out to banks in an early bird phase but was never launched to general syndication. The £225m debt package supports Clayton, Dubilier & Rice’s buyout of Bodycote Testing. Mandated lead arranger and bookrunners are Barclays Capital, RBS, BNP Paribas and RBC.

The deal will come at an OID in the mid-90s, and coupons have been increased across the facilities.

Debt is now split between a £46m seven-year amortising TLA paying 350bp over Libor up from 300bp, a £50m eight-year bullet TLB paying 400bp up from 350bp, a £50m nine-year bullet TLC paying 450bp up from 400bp.

There is a £35m seven-year RCF and a £20m seven-year capex/acquisition facility. A £54m 10-year mezzanine facility now pays 11.50% split between cash pay and PIK and is NC3, having initially launched at NC2/102/101.

A bank meeting was well attended on Thursday, and the size of what is effectively a club at the top limits the amount of debt to be sold down, though sources have suggested the OID may be too conservative to draw investors. Investors have been given a soft date of February 25 to respond.


Target nation: Italy

Date announced: 24/12/08

Acquirers: Bain Capital and Clessidra Capital Partners

Total value: €535m

Arrangers: BNP Paribas and others

Financing: €275m

Mandated lead arrangers and physical bookrunners BNP Paribas, Calyon, HSBC, HVB-UniCredit, Intesa Sanpaolo and MPS Capital Services, along with mandated lead arrangers and non physical bookrunners IKB and Natixis, have raised a significant oversubscription, and closed syndication of €275m of senior facilities backing the buyout of Italian business information provider CeBi-Cerved, and its merger with Lince.

Centrobanca, Interbanca and Unipol Merchant joined the deal in syndication.

The facilities back the LBO of CeBi-Cerved by Bain Capital and Clessidra Capital Partners, as well as refinancing Lince, owned by Bain and the Romeo family.

Facilities are split into a €170m five-year amortising term loan A priced at 300bp over Euribor, an €80m five-year and three-month term loan B Paying 350bp, and a €25m five-year undrawn revolver paying 300bp.

Total leverage at closing is 2.5x the €99.4 estimated pro forma EBITDA for the combined CeBi-Lince business in 2008. Signing took place on December 23.

N&W Global Vending

Target nation: Italy

Date announced: 31/10/08

Acquirers: Investcorp and Barclays Private Equity

Total value: Undisclosed

Arranger: Bank of Ireland and others

Financing: €470m

Bookrunners Bank of Ireland, Barclays, BNP Paribas, Calyon, ING, Intesa Sanpaolo, Natixis and SG have closed syndication of debt backing the buyout of N&W Global Vending, with a smaller oversubscription.

The deal has been in the market since the autumn. Senior debt is split between a €130m seven-year term loan A paying 275bp over Euribor, a €130m eight-year term loan B paying 350bp and a €130m nine-year term loan C paying 400bp.

In addition there is a €20m seven-year revolver paying 275bp over Euribor and a €60m seven-year acquisition facility that pays 300bp.

A €150m mezzanine tranche was placed with Intermediate Capital Group.

Leverage is set at 4.3x senior debt as of August 2008, and 5.7x total debt. The deal is backed by an equity contribution of just under 40%.

The €470m debt package supports Investcorp and Barclays Private Equity’s buyout of the Italian vending machines maker.

NDS Group

Target nation: Germany

Date announced: 27/06/08

Acquirer: Permira

Total value: US$3.7bn

Arranger: JP Morgan

Financing: Unknown

A deal that saw sponsor Permira become 51% owner of set-top box maker NDS Group funded in late January has opened up the prospect of a new issue deal coming to syndication in Europe in the coming month. Former 72% owner News Corp retains a 49% stake following the P2P deal, which values the business at US$3.7bn.

The mandate to arrange debt backing the deal initially went to bookrunners JP Morgan and Morgan Stanley in October 2008. They were joined by bookrunners Bank of Ireland, BNP Paribas and Lloyds TSB in an initial expansion of the syndicate in November.

Arranging and pricing a large new primary deal will be tough. There is currently no visibility on the level of bank appetite for debt and only the most limited visibility on the wider economic outlook.

Powerlines Group

Target nation: Austria

Date announced: 20/11/08

Acquirer: Gilde

Total value: Undisclosed

Arrangers: Investkredit

Financing: €100m

Syndication of €100m of debt backing Gilde’s buyout of Austria’s Powerlines Group has closed oversubscribed, through bookrunners Sal Oppenheim and Deutsche Bank.

Investkredit joined as mandated lead arranger ahead of closing, with three German and Austrian institutions joining as joint lead arrangers and lead managers during general syndication.

The deal includes just under €100m of senior and mezzanine debt. Mezzanine was placed prior to closing. Senior leverage is less than 3x and total leverage below 4x 2008 EBITDA. The deal carries an equity cushion of more than 50%.

Powerlines is a prime contractor for the planning, installation and maintenance of transmission lines and cable systems as well as telecommunications infrastructure.

Source: IFR/EVCJ