Phadia PIKs away at mezzanine

Bookrunners RBS, UBS and UniCredit will replace an €180m mezzanine piece with a €225m PIK loan during syndication of the €995m facility backing sponsor Cinven‘s €1.285bn buyout of Phadia from PPM Capital and Triton.

The facility now comprises a €96m term loan A, a €272m B tranche and €272m C tranche along with a €30m revolver and €70m in second lien. A planned €180m mezzanine piece will be replaced by a larger €225m PIK loan. The structure is 9.5x Ebitda in total and 7.2x through the second lien. The 37% equity contribution is relatively large and may lead to a substantial reverse flex.

Sweden-based Phadia develops manufactures and markets complete blood testing systems to support the clinical diagnosis and monitoring of allergies and auto-immune diseases. Its year-end results are expected to show annual revenues of €260m and Ebitda of €97.7m.

Cinven bought the business in a secondary buyout from PPM Ventures and Triton Partners which themselves acquired the business from Pfizer for US$575m in 2004.

Phadia develops, manufactures and markets complete blood testing systems to support the clinical diagnosis and monitoring of allergy and auto-immune diseases. Year-end results are expected to show €260m in revenues and Ebitda of €97.7m.