Lecta is in the market with a EURO1.066 billion recap and increase of its EURO925 million LBO facility of April this year, via mandated lead arranger Deutsche Bank.
Banks are being asked to agree to an amendment so the company can increase its drawn debt and permit sponsors CVC Capital Partners to take some equity out of the company.
The deal involves providing the company with EURO190 million in new money, which will be added to the B and C tranches. Banks in the existing syndicate are being approached, as are a small group of new banks that have expressed interest in the deal.
The senior debt comprises a EURO540.8 million seven-year term loan A at 200bp over Euribor, a EURO214 million eight-year term loan B at 250bp over Euribor, a EURO70 million seven-year capex line at 200bp over Euribor with a 75bp commitment fee, and a EURO100 million seven-year revolver, also at 200bp over Libor with a 75bp commitment fee.
The original facility, which backed CVC Capital Partners’ buyout of Cartiere del Garda, Torraspapel and Smurfit Condat, was arranged by mandated lead arranger Deutsche Bank and joint lead arrangers BBVA, BCI, CIBC World Markets and Credit Lyonnais.