Almatis
Target nation: Germany
Date announced: 01/11/07
Deal type: Secondary buyout
Acquirers: Dubai International Capital
Total value: US$1.2bn
Mandated arrangers: UBS
Financing: US$1bn
In the first European sole leveraged mandate of size since the summer credit crisis, Dubai International Capital has mandated UBS to arrange the debt supporting the buyout of Almatis from Rhone Capital and Ontario Teachers. Debt totals around US$1bn. Structurally, the deal will reflect the new market reality and will be primarily aimed at bank and mezzanine lenders. Tellingly, the leverage of the new facility will be lower than the figure achieved when Almatis was recapitalised earlier this year in US$920m transaction also led by UBS. Then the deal was sold at 5.1x through the senior secured, 5.9x through the second lien and 6.6x through the PIK. The new debt structure will be split between senior, second lien and mezzanine.
Since the credit crisis bank and mezzanine investors, which had largely sat out the worst excesses of the credit boom, have said they are willing to book well structured and priced credits. But given the back log of unsold deals, underwriting banks have been unwilling or unable to support new transactions, while the reduced debt multiples means the price private equity is now able to offer is now below most sellers’ expectations.
UBS is therefore hoping to take advantage of this demand, which remains largely uninterested in booking many of the large unsold transactions in their current form. Moreover, as a well known name that was first bought out in 2004 and then subject to three recapitalisations, Almatis is well know in the market and has a good bank following. Coupled with a strong state linked Middle Eastern sponsor that is willing to put down a large equity cheque, the name is seen as a good one to open the market.
In a statement, Dubai International Capital will retain the existing management team and further support the global growth strategy pursued by Almatis.
Applus
Target nation: Spain
Date announced: 25/07/07
Deal type: LBO
Acquirer: Carlyle
Total value: €1.48bn
Mandated arrangers: Barclays Capital, Calyon, Caja Madrid, SG and ICG
Financing: €1.085bn
Syndication of the senior and second lien tranches on the loan backing the buyout of Applus by Carlyle Group for €1.48bn, which is mandated to Barclays, Calyon, Caja Madrid, SG and ICG, has been launched. Senior debt totals €835m and is split between an eight-and-a-half year €610m term loan B paying 275bp, a seven-year €150m tranche paying 225bp and a seven-year €75m line paying 225bp. In addition the €100m nine-and-a-half years second lien pays 5% and has 102/101 call protection. The mezzanine tranche is €150m. Banks are being offered the term loan B and the second lien. Applus is a Spanish inspection, certification and testing company.
CTL Logistics
Target nation: Poland
Date announced: 21/11/07
Deal type: LBO
Acquirers: Bridgepoint
Total value: Undisclosed
Mandated arrangers: Commerzbank and ING
Financing: Unknown
Bridgepoint has mandated Commerzbank and ING to arrange the debt supporting the acquisition of Polish rail freight distributor CTL Logistics. The deal is Bridgepoint’s first acquisition in Central Europe. CTL had revenues of about €285m in 2006.
Deutsche TeleKom’s Media & Broadcast
Target nation: Germany
Date announced: 08/11/07
Deal type: LBO
Acquirers: TdF (TPG, Axa Private Equity and Charterhouse)
Total value: €850m
Mandated arrangers: ABN Amro, Calyon, Dexia and SG
Financing: €565,
Telediffusion de France (TdF) has agreed a €850m deal to buy Deutsche TeleKom‘s Media & Broadcast unit. The deal is backed by a €565m debt package with BNP Paribas and Goldman Sachs mandated as physical bookrunners with ABN Amro, Calyon, Dexia and SG bookrunners and mandated lead arrangers. The debt package is split between a €505m senior package and a €6m mezzanine tranche. The mezzanine has been placed ahead of syndication. Rather than a bolt-on financing, the deal is understood to have been financed on a stand alone basis through an opco/propco structure Media&Broadcast is a service provider for the media sector and transmits television and radio programmes on behalf of 850 national and 110 international broadcasting companies. Despite high leverage Tdf itself is among the most popular leveraged names among debt investors thanks to its quasi-infrastructure profile, providing over-the-air and wireless services to broadcasters and telecom operators in Europe. In its French home market it has a monopoly in broadcasting public TV and radio and a very strong position with the commercial TV and radio companies. It also has strong relationships with all three French mobile operators, Orange, SFR and Bouygues. Earlier this year bookrunners BNP Paribas and Citigroup repriced €3.97bn of the package backing the Texas Pacific Group’s 2006 buyout of the business, cutting the margins across A, B and C terms loans as well as second lien. TdF’s ability to win a competitive auction against non-leverages competitors suggests that while the leverage finance space has become far more difficult sponsors and sponsor backed businesses remain a force. The infrastructure-type profile of Media&Broadcast attracted bidders including Macquarie backed national Grid Wireless, which TdF saw off to secure the deal. The towers segment is set to see further activity, with buyout houses, infrastructure funds and corporates all likely potential bidders for a 50% stake in Wind Telecom and Hutchinson Whampoas Italian towers joint venture.
ELIS
Target nation: France
Date announced: 08/08/07
Deal type: Secondary buyout
Acquirers: Eurazeo
Total value: €2.28bn
Mandated arrangers: BNP Paribas
Financing: €1.85bn
Bookrunner BNP Paribas has launched syndication of senior facilities backing Eurazeo‘s €2.276bn secondary buyout of ELIS. The deal is backed by €1.85bn of debt. Senior debt is split between a seven-year €50m term loan A1 borrowing base facility, a seven-year €525m term loan A2 paying 250bp over Euribor, a €365m eight-year term loan B paying 275bp and a €365m eight-and-a-half year term loan C paying 325bp. Leverage is 4.8x through senior facilities and 6.8x through senior mezzanine. A €220m senior mezzanine tranche priced at 8.5%, with no fees and has already been placed following an informal syndication process. There is also a €325m quasi equity – junior mezzanine tranche. Syndication targets both banks and funds. A fund carve out of 66% of the B&C tranche offers a blended 300bp coupon priced at an OID of 99.50. Banks will be offered separate tickets and fees. As well as the LBO debt Eurazeo and its associated companies are contributing €468m in equity. An external growth strategy may be backed by a further credit facility of up to €150m. ELIS is a France based supplier of workwear and linen rental and hygiene services. The deal is expected to close in the fourth quarter. ELIS has revenues of around €950m and employs 13,000 people across Europe.
Faceo
Target nation: France
Date announced: 03/10/07
Deal type: LBO
Acquirer: Apax Partners SA
Total value: Undisclosed
Mandated arranger: SG
Financing: €178m
The €178m loan backing the buyout of Faceo by Apax Partners from Cegelc and Thales, mandated to SG, has been launched. The facility comprises €154m of senior debt split between a seven-year term loan A of €60m paying 225bp, an eight-year term loan B of €47m paying 275bp and a nine-year term loan C, also for €47m, paying 325bp. The €24m of mezzanine debt has been pre-placed. Total leverage is 5.1x and the senior leverage is 4.1x. . In 2006, its turnover was €349m.
Firth Rixson
Target nation: UK
Date announced: 11/11/07
Deal type: Secondary buyout
Acquirers: Oak Hill Capital Partners
Total value: £945m
Mandated arrangers: Lehman Brothers, GE Capital and Lloyds
Financing: €900m
Arrangers have launched syndication of the €900m debt pacakge supporting Oakhill’s buyout of Firth Rixson. Lehman Brothers is leading the deal with GE Capital and Lloyds acting alongside. Lehman is bookrunner across both the €650m senior and €250m mezzanine debt, GE Commercial Finance is joint bookrunner on the senior piece, while Lloyds as mandated lead arranger on the mezzanine tranche. The deal is the largest buyout mandated since the credit crunch in July. Senior facilities are split between a £50m seven-year revolving credit paying 250bp over Libor, a £125m seven-year term loan at 250bp, a £137.5m eight-year bullet term loan B at 300bp and a £137.5m nine-year term loan C paying 350bp. In addition there is a £175m 10-year bullet Mezzanine facility paying 4.50% cash and 4.50% PIK. Bank lenders are offered a £35m ticket paying 75bp as joint lead arrangers or £20m for 60bp and a lead arrangers title. Syndication launched on November 14, targeting existing bank and institutional lenders in particular. Senior debt is 3.9x with total debt of 5.6x LTM December 2007E EBITDA.
Oakhill is buying the UK engineer from Carlyle Group and Lehman Brothers Co-Investment Partners for approximately £945m. The sponsor’s equity contribution is approximately 40% of total capitalisation. Firth Rixson supplies specialised metal and engineered products to the aerospace industry, the UK headquartered business has extensive US operations.
GET
Target nation: Norway
Date announced: 20/11/07
Deal type: Secondary buyout
Acquirers: Quadrangle and GS Capital Partners
Total value: €745m
Mandated arrangers: BNP Paribas and RBS
Financing: €462m
BNP Paribas and RBS have underwritten NKr3.71bn (€462m) debt pacakge backing Quadrangle and GS Capital‘s buyout of GET, a Norwegian cable operator, from Candover. Debt is split between senior facilities totalling NKr3.025bn and a NKR685m mezzanine loan.
Group Retif
Target nation: France
Date announced: 27/07/07
Deal type: Tertiary buyout
Acquirer: Pragma Capital
Total value: Undisclosed
Mandated arranger: Bank of Scotland
Financing: €240.5m
Bank of Scotland has launched the €240.5m of senior debt backing Pragma Capital‘s tertiary buyout of French shop fittings firm Group Retif from ABN AMRO Capital. Facilities are split between a €45m six-and-a-half-year term loan A paying 225bp over Euribor, a €50m seven-and-a-half-year term loan B paying 275bp, a €50m eight-and-a-half-year term loan C paying 325bp, a 430m seven-year capex facility paying 225bp and a €20m seven-year revolver paying 225bp. In addition there is a €45.5m second lien tranche. ICG will provide an additional mezzanine loan. Leverage is 4.3 times through the senior debt. ABN AMRO Capital aquired Group Retif in 2002 in a deal backed by a €90.7m in senior facilities and €21.4m of mezzanine via mandated lead arranger SG and joint arranger Credit Agricole Indosuez.
Royal Swets & Zeitlinger Group
Target nation: Netherlands
Date announced: 06/09/07
Deal type: LBO
Acquirer: Gilde Buy Out Partners
Total value: Undisclosed
Mandated arrangers: ING Bank, Landsbanki and Rabobank
Financing: €230m
The €230m in loan facilities for Royal Swets & Zeitlinger Group (Swets) have been mandated to ING Bank, Landsbanki and Rabobank as mandated lead arrangers and bookrunners. ABN Amro is a joint lead arranger. The facilities will offer senior debt, revolving credit and guarantee facilities and will finance the acquisition of Swets by Gilde, the Dutch Investment company. Funds will also be used for general corporate puposes and working capital. The leverage on the senior tranche if 3.7x, while total leverage is at 4.4x. Swets is a manager of subscriptions, offering services to publishers, procurement managers and librarians.
Securitas Direct
Target nation: Sweden
Date announced: 13/11/07
Deal type: LBO
Acquirer: ESML Intressenter
Total value: US$1.5bn
Mandated arrangers: Bank of Scotland, Dresdner Kleinwort+, RBS and SEB
Financing: Unknown
Bank of Scotland, Dresdner Kleinwort+, RBS and SEB have been mandated to arrange the SEK9.6bn financing of the LBO of Securitas Direct. A consortium called ESML Intressenter AB, comprising EQT Partners, SakI AB, Melker Schorling and Investment AB Latour has offered US$1.4bn in cash for Securitas. Securitas Direct was spun out of Securitas in 2006.
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