Mandated lead arranger CIBC World Markets has formally launched senior syndication of the EURO600 million debt financing backing CVC Capital Partners and PAI’s LBO of a 53.66 per cent controlling stake in animal nutrition specialist Provimi from Edison.
Co-lead underwriters are asked to commit EURO125 million for an upfront fee of about 150bp, with a target final hold of EURO50 million. The senior debt comprises a EURO220 million seven-year term loan A at 225bp over Euribor, a EURO135 million eight-year term loan B at 275bp over Euribor, a EURO135 million nine-year term loan C at 325bp and a EURO110 million seven-year revolving credit at 225bp and a commitment fee of 75bp. The revolver includes a EURO50 million acquisition line and there is also a EURO150 million short-term share purchase facility, which will not be syndicated. Total and senior debt to EBITDA is 3.5x. A large element of the EURO600 million syndicated facility represents the refinancing of an existing EURO550 million three-year revolving credit, which was arranged for Provimi last October by BNP Paribas, Mediobanca, SG and Unicredito.
That facility was part of a EURO2.85 billion demerger loan that facilitated the split up of Eridania Beghin-Say into sugar producer Beghin-Say, oil seed processor Cereol, starch producer Cerestar and animal nutrition company Provimi. All four businesses were put on the auction block late last year.
The LBO offer values the 53.66 per cent stake at EURO203 million. The share acquisition is subject to regulatory approval, which is expected in November. This will be followed by a mandatory public offer, at the same price of EURO14.5 per share, to acquire the outstanding 46.33 per cent of the company that is publicly held, valuing the whole company at EURO378.3 million. This subsequent purchase will be financed by the EURO150 million short-term share purchase facility and other bilateral loans provided by CIBC.