LBO Syndications arranged in March

Abbot Group

Target nation: UK

Date announced: 07/12/07

Deal type: LBO

Acquirer: First Reserve

Total value: £906m

Arrangers: Goldman Sachs

Financing: US$2.16bn

Global coordinator and bookrunner Goldman Sachs with bookrunners Bank of Scotland, Lloyds TSB and RBS have launched the US$2.16bn credit facilities backing First Reserves acquisition of oil services business Abbot Group. The deal is the largest European syndications launched since the credit crunch and will be among the most closely watched financings of the year.

Facilities include US$1.55bn of senior tranches: made up of a US$200m amortizing seven year term loan A paying 275bp over libor, a US$500m eight year bullet term loan B paying 350bp, a US$500m nine year bullet term loan C paying 375bp and a US$100m seven year bullet funded synthetic letter of credit facility paying 275bp.

Unfunded tranches are a US$75m revolver a US$125m capex/acquisition facility and a US$50m revolving letter of credit facility, all priced at 275bp. The revolving letter of credit facility will not be syndicated.

The financing also includes a US$615m equivalent 10 year secured bridge loan facility, which sources away from the deal is priced as quasi mezzanine.

Proforma leverage is 3.73x through the senior and 5.65x total. The facility has an equity cushion of around 43% of the total pro-forma capitalization.

Bank lenders have been offered prorata tickets of US$40m for 100bps and US$25m for 85bps.

Abbot Group is a UK based oil field services company that owns and operates onshore and offshore drilling rigs and provides drilling services to third parties.

It operates in Europe, the Middle East, Russia, North and West Africa, and the Caspian Region. Sponsor First Reserve is the leading private equity firm specializing in the energy industry with over US$12.5bn under management.


Target nation: Norway

Date announced: 20/11/07

Deal type: Secondary

Acquirer: Consortium

Total value: €745m

Arrangers: BNP Paribas and RBS

Financing: €462m

BNP Paribas and RBS are syndicating the NKr3.71bn debt package supporting Quadrangle and GS Capital‘s buyout of GET, a Norwegian cable operator. Senior syndication was launched in December, aimed at existing investors and Nordic banks.

Facilities are split between a NKr525m seven-year term loan A paying 250bp over Libor, a NKr1bn eight-year term loan B at 275bp split between NKr368m in Kroner and NKr631.25m in Euro, and a NKr1bn nine-year term loan C at 325bp split between NKr368m in Kroner and NKr631.25m in Euro.In addition there is a NKr300m capex facility paying 250bp, and a NKr200m revolver at 250bp.


Target nation: UK

Date announced: 12/02/08

Deal type: Secondary

Acquirer: Merrill Lynch

Total value: Undisclosed

Arrangers: BoI and others

Financing: Unknown

Mandated lead arrangers Bank of Ireland, Barclays, Merrill Lynch and RBS have launched syndication of the £222.5m debt backing the acquisition of Integrated Dental Holdings by Merrill Lynch Global Private Equity.

Debt is split between a £5m seven-year revolver, a £55m seven-year acquisition facility, a £40m seven-year amortising term loan A, a £41.25m eight-year term loan B, a £41.25m nine-year term loan C and a £40m 10 year-mezzanine tranche. Tickets of £20m for 125bps, £15m for 100bps and £10m for 80bps. Pro forma leverage is 4.6x senior and 6x total, based on EBITDA of £26.7m for the last twelve month.


Target nation: UK

Date announced: 15/12/07

Deal type: LBO

Acquirer: 3i

Total value: Unknown

Arrangers: Barclays and SG

Financing: £282m

Barclays and SG have launched syndication of the £282m loan backing the buyout of Inspicio by 3i. Facilities include £180m of senior term loans and a £55m revolving credit facility, a £47m mezzanine tranche has already been placed. Banks are invited to join on tickets of £20m, paying 125bp and £15m paying 100bp. The facilities both fund the buyout and refinance some existing debt. Inspicio is a UK based testing and environmental services group.

3i is buying the company through Angus Newco, an SPV set up with the directors of Inspicio. Inspicio plc was admitted to AIM in April 2005 as a newly incorporated company.


Target nation: UK

Date announced: 05/03/08

Deal type: Secondary

Acquirer: Charterhouse

Total value: £514m

Arranger: RBS

Financing: Unknown

RBS has been mandated as bookrunner backing Charterhouse Capital Partners‘ £514m buyout of Tunstall Group from Bridgepoint.

Tunstall is a UK based provider of telecare systems for the elderly and infirm, with products including care alarm systems for private homes and care homes, software for use by monitoring centres to respond to alarms raised and the outsourced management of call centres on behalf of local authorities and related support services.

Bridgepoint acquired the business in a £225m deal in June 2005 and is understood to have achieved a 2.5x money multiple from its investment.

Z&J Technologies

Target nation: Germany

Date announced: 14/03/08

Deal type: Secondary

Acquirer: ILP Private Equity

Total value: Undisclosed

Arranger: Commerzbank

Financing: €90.5m

Mandated lead arranger and bookrunner Commerzbank has been mandated to lead the debt financing backing the acquisition of Z&J Technologies by sponsor ILP Funds which is advised by J. Hirsch & Co. The business was acquired in a secondary buyout from Germany based Equita.

The debt package consists of €90.5m of senior facilities. Syndication of the senior facilities is already underway, with a number of early commitments from banks and an insurance company.

The buyout transaction closed on the 7 March. Z&J manufactures mostly customized heavy duty valves and equipment for the petrochemical, iron & steel and glass industries.

Source: IFR Loans/EVCJ