LBO Syndications

Alliance Medical

Target nation: UK

Date announced: 05/11/07

Deal type: Secondary buyout

Acquirer: DIC

Total value: £600m

Mandated arranger: BoS and DKIB

Financing: £372m

Alliance Medical has closed and funded the £372m senior debt package supporting its Dubai International Capital-backed buyout. Mandated lead arranger 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.


Target nation: Germany

Date announced: 12/08/08

Acquirer: Capvis

Total value: €300m

Arranger: Commerzbank

Financing: €205m

Bookrunner Commerzbank has launched general syndication of the €205m acquisition facilities backing Capvis’s buyout of Bartec in a secondary deal from Allianz Capital Partners.

Banks are invited to join on tickets of €17.5m paying 130bp and €12.5m paying 110bp.

The deal includes a €45m seven-year term loan A paying 250bp over Euribor, a €46m eight-year term loan B priced at 325bp, a €46m nine-year term loan C priced at 375bp, a €20m seven-year revolving credit facility priced at 250bp, a €20m seven-year acquisition facility priced at 250bp and a €28m mezzanine facility.

An early bird senior phase has already been completed. The deal closed and funded on August 28.

Opening leverage on the deal is 3.96x senior and 4.79x total and the capital structure includes a 49.2% equity contribution, a bank meeting will take place at the end of September.

Germany based Bartec provides safety technology products and services to be used in hazardous atmospheres – including in the oil and gas, chemicals, pharmaceutical and mining industry. It generates sales of more than €200m with a workforce of more than 1,350.


Target nation: UK

Date announced: 29/08/08

Acquirer: CD&R

Total value: £417m

Arranger: Barclays

Financing: £255m

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.


Target nation: France

Date announced: 19/06/08

Acquirer: LBO France

Total value: €1.6bn

Arranger: HSBC

Financing: €900m

Bookrunners HSBC, Natixis, RBS and SG have added a further five banks to the group backing €900m of facilities supporting the buyout of French engineering group Converteam by LBO France.

Despite the horrific market, AIB, Bank of Ireland, BayernLB, CIC and Mizuho have all joined the deal, which had looked to be in serious jeopardy when original underwriter Lehman Brothers collapsed.

While margins have not been flexed, the deal is understood to have seen fees increased to counter market volatility.

Debt is split into a €290m seven-year term loan A paying 275bp over Euribor, a €145m eight-year term loan B paying 325bp over, a €145m nine-year term loan C paying 375bp over, a €220m 10-year mezzanine tranche paying 600bp cash and 450bp PIK and a €100m seven-year revolver paying 275bp.

Converteam was previously owned by Barclays Private Equity, which retains a stake in the business.


Target nation: UK

Date announced: 21/12/07

Acquirer: Apax

Total value: £1bn

Mandated arrangers: HSBC

Financing: £850m

Bookrunners HSBC, GE, Lloyds TSB and RBS have pulled syndication of facilities backing the buyout of EMAP, after the stalled deal was dealt a fatal blow by the leveraged finance market sell-off.

In August, the banks re-cut and relaunched the £850m debt package backing Apax and GMG’s buyout of the publishing group, after the original debt package failed in syndication.


Target nation: UK

Date announced: 23/07/08

Acquirer: Lion Capital

Total value: £1.1bn

Arranger: JPMorgan

Financing: £730m

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.


Target nation: UK

Date announced: 23/07/08

Acquirer: 3i

Total value: €728m

Arranger: Credit Mutuel-CIC and Natixis

Financing: €300m

Bookrunners and mandated lead arrangers Credit Mutuel-CIC and Natixis are closing the early bird syndication of the €300m facilities arranged for Labco SAS.

Four European banks are set to join the transaction in the early bird stage which will be followed by general syndication in coming weeks


Target nation: Spain

Date announced: 16/09/08

Acquirer: N+1

Total value: Unknown

Arranger: RBS and others

Financing: €90m

Facilities totalling €90m backing the buyout of Grupo MBA by Spanish sponsor N+1 have been launched to a limited retail syndication aimed at relationship banks. Bookrunners and mandated lead arrangers RBS and SG and mandated lead arranger Barclays have already been joined by joint lead arranger IKB Deutsche Industriebank. The debt is made up of a €40m seven-year amortising term loan A, a €40m eight-year term loan B bullet, a €5m acquisition/capex facility and a €5m revolver.

The total transaction leverage multiple stands at around 3.5x.

Grupo MBA is a an independent Spanish surgical orthopaedics distributor.

TMF Group

Target nation: Netherlands

Date announced: 17/07/08

Acquirer: Doughty Hanson

Total value: €750m

Arrangers: ING and UBS

Financing: €445m

The €445m debt package supporting Doughty Hanson’s secondary buyout of TMF Group has closed and has been funded. Mandated lead arrangers and bookrunners are ING and UBS, with Bank of Ireland coming in as mandated lead arranger prior to launch. The deal was flexed prior to close, with margins on senior debt increased by 50bp across the board and the mezzanine increased by 75bp.

Post-flex, senior debt is split into a €80m seven-year term loan A paying 325bp over Euribor, a €92.5m eight-year term loan B at 375bp, a €92.5m nine-year term loan C at 425bp, a €30m revolver and a €50m acquisition loan. In addition, there is a €100m mezzanine loan.