News in brief

Merrill Lynch has launched a €240m refinancing package for long stressed Belgian credit Ontex. The facilities include €240m of senior debt and €120m of second lien. Proceeds will contribute to the repayment of outstanding debt in the long stressed credit. The deal will test the market’s appetite for high-risk investments. Ontex was manoeuvred away from imminent default in March only through the radical intervention of sponsor Candover, advised by Close Brothers. Default was halted through the €300m sale of Ontex healthcare division, which makes adult incontinence products, Bart van Malderen, part of the original owner family. Candover also injected a further €70m in new equity into the remaining business, which is focused on nappies and feminine hygiene products.

• The €1.226bn–€1.357bn financing backing Permira‘s secondary buyout of Provimi has launched, via bookrunners ABN AMRO, Credit Suisse and JPMorgan. CVC and PAI are selling the company, part of which is publicly traded on the Euronext and it is the acceptance level of these shareholders that will impact the facility’s final size. Debt comprises a €120m seven-year term loan A at 200bp over Euribor, a €265m eight-year term loan B at 237.5bp, a €265m nine-year term loan C at 275bp, a €155m seven-year revolver at 200bp and a €200m seven-year capex line at 200bp.There is also a €160m nine-and-a-half year second lien tranche and an up to €115m 10-year mezzanine tranche. Pricing on these subordinated debt tranches will be determined on a bookbuild basis. Some 60% of the B and C tranches have been carved out for institutional investors. A €30m pro-rata bank ticket is on offer for 75bp upfront. Based on the deal being at its maximum size, leverage is 4.5x senior net debt to Ebitda, 5.6x through the second lien and 6.3x total.

• Price talk of a margin in the 225bp over Libor area on Trader Media Group‘s £800m eight-year term loan B and around 200bp over Libor on the £35m seven-year revolver. Pricing is being determined on a bookbuild basis. Trader Media Group’s £835m LBO financing launched, via bookrunner JPMorgan and non-physical bookrunner BNP Paribas. The deal backs Apax Partners‘ acquisition of the company from Guardian Media, is Europe’s first covenant-light new-money financing. Debt comprises a £800m eight-year term loan B and a £35m seven-year revolver. Pricing is being determined on a book-build basis. Banks are asked to commit to the revolver on £5m or less for 1bp upfront or for £10m across the two tranches for 70bp.

• Bookrunner Dresdner Kleinwort is out with the €495m refinancing for PVC manufacturer Vinnolit, an Advent company. Leverage on the all senior deal starts at 2.6x. Debt is split between a seven-year term loan A paying 225bp over Libor, an eight-year term loan B at 250bp, a nine-year term loan C at 300bp and a nine-and-a-half-year term loan D at 375bp. The refinancing will not fund a dividend.