Target nation: Norway
Date announced: 07/02/08
Deal type: LBO
Acquirers: 3i
Total value: US$395m
Mandated arranger:
Financing: Unknown
Target nation: UK
Date announced: 07/02/08
Deal type: LBO
Acquirer: Consortium (see below)
Total value: £522m
Mandated arranger: WestLB
Financing: £225m
Bookrunner
Debt is structured as a Shariah compliant commodity Murabaha. The all senior bullet deal includes a £200m eight year term loan and £25m eight year revolver. The deal supports a consortium of incoming Chairman David Richards, and Kuwait’s The Investment Dar (TID) and Adeem Investment & Wealth Management which agreed a £522m deal to buy Aston Martin from Ford in 2007.
Walid Sarieddine, head of Islamic Finance at WestLB who led the deal said: “The requirement to have a Sharia-compliant financing solution came from the sponsors,
The deal pays 295bp over six month libor for the initial five years, stepping up to 345bp over for the remaining three years. The terms of the deal include a put option at the end of year five allowing the participating banks to demand repayment of the facilities. Sponsors will be permitted to repay the facilities at the end of every rollover period.
The deal was syndicated to a mix of European banks, GCC banks and Asian banks.
Lloyds TSB, Bahrain Islamic Bank, Standard Bank and European Islamic Investment Bank joined as mandated lead arrangers ahead of the launch of syndication. Qatar National Bank, Europe Arab Bank joined as mandated lead arrangers and Kuwait Finance House (Malaysia) Berhad, Bank Mualamat Malaysia Berhad and Banque BIA joined as managers during syndication.
Target nation: UK
Date announced: 08/02/08
Deal type: LBO
Acquirer: Montagu
Total value: £1.7bn
Mandated arrangers: Barclays and others
Financing: Unknown
Coor
Target nation: Sweden
Date announced: 01/11/07
Deal type: Secondary
Acquirer: Cinven
Total value: €540m
Mandated arrangers: Danske Bank and others
Financing: SKR3bn
Danske Bank, DnB Nor and RBS have closed syndication of the SKR3bn of debt backing
Coor is a Nordic provider of facility management services. It employs 3,700 people in Sweden, Denmark, Norway, Finland and Belgium. It was previously part of Skanska.
Cinven paid €540m for Coors in November last year. The company specialises in managing, developing and streamlining service functions for offices, properties and factories. These services are provided under long term contracts to a wide range of blue chip companies and public institutions across the Nordic region.
Target nation: Netherlands
Date announced: 16/01/08
Deal type: Secondary
Acquirers: CapVest
Total value: Undisclosed
Mandated arranger: Rabobank
Financing: €275m
The syndication of the €275m loan backing
Banks are offered a 95bp fee for a €25m ticket and an 85bp fee for a €20m ticket. The facility is split between a 7-year €60m term loan A paying 225bp, an 8-year €57.5m term loan B at 275bp, a 9-year €57.5m term loan C at 325bp, a 7-year €20m revolver with a margin of 225bp, a 7-year €30m capex facility also paying 225bp.
Target nation: UK
Date announced: 21/12/07
Deal type: LBO
Acquirer: Apax
Total value: £1bn
Mandated arrangers: HSBC and more
Financing: £850m
In December
A source close to the situation said: “The industrial logic to merge the businesses remains but the debt market is currently unable to support that move at levels attractive enough to justify refinancing existing facilities.”
Earlier facilities backing the 2007 acquisitions of Incisive and
Apax acquired UK publishing group EMAP in December last year, through a consortium called Eden Bidco co-owned by GMG, the UK multimedia company that owns, among others, the national newspaper the Guardian and regional newspapers such as the Manchester Evening News.
Eden Bidco offered 931 pence in cash for each share, valuing the entire issued and to be issued ordinary share capital of Emap at the expected time of completion at approximately £2bn.
Irina Hemmers, partner at Apax, said: “We believe that Emap is a high quality asset which is uniquely positioned in attractive markets.”
Target nation: France
Date announced: 08/02/08
Deal type: LBO
Acquirer: Industri Kapital
Total value: Undisclosed
Mandated arrangers: SG and CM-CIC
Financing: €172m
Etanco was founded in 1952 and is the leader in the design, manufacturing and distribution of building fastener and fixing systems. The family employs 600 people in six sites and generates a turnover of €130m. The group has a full range of 80,000 products grouped under four categories: Fastening, Over-Roofing, Safety and Façades which allow it to offer products adapted to the specific market requirements particularly in terms of environmental and European regulatory constraints.
Target nation: UK
Date announced: 12/02/08
Deal type: Secondary
Acquirer: Merrill Lynch
Total value: Undisclosed
Mandated arrangers: BoI and others
Financing: Unknown
The deal is MLGPE’s first sole buyout in Europe, the business is a secondary buyout from mid-market investor
Target nation: Turkey
Date announced: 18/02/07
Deal type: LBO
Acquirer: BC Partners
Total value: US$1.64bn
Mandated arrangers: Unknown
Financing: See below
A consortium of
Sponsors are increasingly turning to domestic lenders as investment banks and global commercial banks struggle to support deals. Turkish banks in particular have liquidity and have a reputation for supporting domestic borrowers. Sponsors can negotiate with such banks with a higher degree of confidence that a deal can be delivered, in contrast to the situation with international bankers hamstrung by nervous credit committees. Domestic lenders are also more likely to offer attractive pricing in the current market. As mainly take and hold lenders they are under less pressure to price with syndication in mind.
Indeed, the deal brings together key private equity trends for the year ahead: sponsors seeking value in a growth opportunity in a high growth economy and relying on local market liquidity to provide debt for lower leveraged deals.
The deal values the entire business at US$3.25bn and will be followed by a tender offer which will then be made later for the rest of the shares in the Istanbul-listed retailer. Migros has a 22% market share. Bulend Ozaydinli former CEO of Koc Holding, Turkey’s largest conglomerate, will become chairman of the group.
The deal is a record-breaking deal for the Turkish market, which has only seen leveraged buyout activity since acquisition finance became available in 2004.
The deal followed an auction by Koc Holding which is exiting its non-strategic businesses. The auction attracted bids from trade buyers Carrefour and local partner Sabanci, Aldi and from private equity firms KKR partnered with Croatian foods group Agrokor and from Bain.
Target nation: Germany
Date announced: 12/10/07
Deal type: Secondary
Acquirer: EQT
Total value: Undisclosed
Mandated arrangers: Commerzbank, BNP Paribas and RBS
Financing: €700m
Senior debt is split between a €50m term loan A paying 225bp over Euribor, a €97.5m term loan B paying 275bp, a €97.5m term loan C paying 325bp and a €325m revolving credit facility, which includes a circa €200m bond line paying 225bp, a €95m mezzanine loan pre placed and underwritten by ICG. In addition facilities include a €50m cash bridge. Leverage is 3.5x through senior and 5x total.