The second stage of underwriting on the backing of the Legrand buyout has received its first commitment. The first stage of underwriting was a success with 10 banks joining the facility as lead arrangers with underwriting commitments of EURO250 million, scaled back to EURO149 million following a substantial oversubscription. Bank of Scotland, Bear Stearns International, BNP Paribas, Credit Lyonnais, Credit Agricole Indosuez, HypoVereinsbank, IntesaBCI, Mediobanca, Natexis Banque Populaires, and SG all joined at this stage.
In the second stage, banks are invited as co-arrangers to sub-underwrite EURO100 million with a projected final hold of EURO65 million for a 30bp sub-underwriting fee and a 95bp participation fee.
Senior debt comprises a EURO722 million seven-year amortising term loan A at 225bp over Euribor, a EURO425 million eight-year bullet term loan B at 275bp, a EURO425 million nine-year bullet term loan C at 325bp, a EURO300 million seven-year bullet borrowing base facility at 225bp and a EURO250 million seven-year bullet revolver, also at 225bp, with a commitment fee of 62.5bp.
In addition to the senior debt, there is also a EURO600 million unsyndicated mezzanine bridge loan. Leverage levels are 4.9x total debt to EBITDA and 4x senior debt to EBITDA.