AA/Saga
Target nation: UK
Date announced: 25/06/07
Sponsor (s): Permira, CVC and Chaterhouse
Mandated arranger (s): Barclays and Mizuho
Financing: £4.8bn
Barclays and Mizuho have been mandated to arrange around £4.8bn in debt associated with the merger of AA and Saga. Of this, around £3bn is reported to be ear-marked for a refinancing of existing debt, with the remainder destined to be a dividend pay-out. Permira and CVC bought AA, the motoring group, in 2004. Saga, the holiday company, was acquired by Charterhouse in 2005. Permira and CVC will ownd 42.5% of the new entity, with Charterhouse taking 37.5%.
Ideal Stelrad
Target nation: UK
Date announced: 29/06/07
Sponsor (s): Warburg Pincus
Mandated arranger (s): BNP Paribas and RBS
Financing: £290m
BNP Paribas and RBS have closed syndication of a £290m recapitalisation of Ideal Stelrad, formerly Caradon. The deal will replace the £185m debt package backing Warburg Pincus‘ secondary buyout of the heating supplies business Caradon. The senior debt package is made up of a £40m seven-and-a-quarter year term loan A paying 200bp, an £85m eight-year term loan B paying 250bp, a £30m seven-year revolver paying 200bp. £20 of nine-and-a-half year second lien pays 4.25% while £30m of 10 year mezzanine pays 4% cash pay plus 4.5% PIK. A single stage syndication closed oversubscribed and the deal is set to fund in the coming week.
Interclean
Target nation: France
Date announced: 02/08/07
Sponsor (s): LBO France
Mandated arranger (s): Credit Mutuel – CIC
Financing: €50m
Credit Mutuel – CIC as MLA and bookrunner has closed general syndication of the €50m senior debt package backing the recapitalisation of Interclean, the company that has resulted from the merger of La Providence and Seni. LBO France is the sponsor. The senior debt was split between a seven-year term loan A, an eight-year term loan B, a even-year revolver and a bridge loan. In addition IDI Mezzanine arranged a mezzanine loan and was joined by Paris Orleans. In syndication CM-CIC was joined by HSBC, Foritis Banque France, LCL and SG as senior managers with Banco Espirito Santo et de la Venetie Paris and Credit Cooperatif both joining as managers.
LR Health & Beauty Systems
Target nation: UK
Date announced: 06/08/07
Sponsor (s): Apax Partners
Mandated arranger (s): Dresdner Kleinwort and SG
Financing: €120m
Mandated lead arrangers and bookrunners Dresdner Kleinwort and SG are set to close the €120m all-senior recapitalisation for LR Health & Beauty Systems with slight oversubscription. DZ Bank joined the Apax backed transaction as Joint Lead Arranger ahead of launch. Apax Partners acquired the company in 2004 with Dresdner Kleinwort leading the original financing.
Luvata
Target nation: Finland
Date announced: 06/07/07
Sponsor (s): Nordic Capital
Mandated arranger (s): CIBC, Morgan Stanley and Nordea
Financing: €725m
Luvata, the Finnish metal manufacturing group, has mandated CIBC, Morgan Stanley and Nordea as bookrunners and mandated lead arrangers to arrange a loan of around €725m. Luvata recently acquired ECO Group, an Italian producer of heat-transfer coils, from Compass Partners European Equity Fund. Luvata, formerly Outokumpu Copper Products, was acquired by Nordic Capital in 2005.
Nocibe
Target nation: France
Date announced: 02/07/07
Sponsor (s): Charterhouse Capital
Mandated arranger (s): Bank of Scotland, BNP Paribas, Calyon and Fortis Bank
Financing: See below
Bookrunners are out with a repricing of the facility backing Charterhouse‘s LBO of Nocibe, a French perfume retailer. Mandated lead arrangers are Bank of Scotland, BNP Paribas, Calyon and Fortis Bank. The repricing sees the €81m term loan A dropped and the B and C tranches increased. The new facility is made up of a €126.6m term loan B now paying 225bp down from 250bp, a €126.6m term loan C at 262.5bp down from 300bp, a €30m seven year revolver at 200bp and a €30m seven year capex facility at 200bp. Subordinated debt is split between a €40m nine-and-a-half year second-lien facility paying 450bp cut from 512.5bp and a mezzanine loan.
Paroc
Target nation: Finland
Date announced: 04/06/07
Sponsor (s): Arcapita
Mandated arranger (s): ING and Morgan Stanley
Financing: €825m
ING and Morgan Stanley have closed the €825m debt package supporting the recapitalisation of Arcapita‘s Paroc Holding Sverige, a stone wool producer. A flex was required on the B, second lien and mezzanine portions. In addition funds were paid an OID of 50bp. The senior and junior debt package is now split between a €550m term loan B paying 262.5bp up from 237.5bp over Libor, a €40m revolver at 200bp, a €85m capex at 200bp, a €56.7m second lien at 425bp up from 400bp and a €93.3m mezzanine loan at 850bp up from 800bp. Arcapita bought out Paroc in June 2006, in a transaction backed by a €545m loan through mandated lead arranger ING.
Picard Surgeles
Target nation: France
Date announced: 06/08/07
Sponsor (s): BC Partners
Mandated arranger (s): Caylon Credit Agricole
Financing: €790m
Picard Surgeles has completed a €790m term loan and revolver through mandated lead arranger and boorkrunner Caylon Credit Agricole. The facility is designed to bring BC Partners controlled Picard Surgeles into crossover territory and is believed to be priced around the 55bp over Euribor level. In this frequently tough sector, market talk suggested the deal experienced pushback in syndication, though the leads insist that the relationship focused deal was well received. Proceeds replace Picard’s €880m recapitalisation signed last year.
Springer Science
Target nation: Germany
Date announced: 03/07/07
Sponsor (s): Candover and Cinven
Mandated arranger (s): Barclays
Financing: €3.083bn
Springer Science+Business Media has mandated Barclays as sole lead on its €3.083bn recapitalisation. Springer Science was acquired by Candover and Cinven in 2003 for €1.05bn and has already recapitalised three times. The last deal, also mandated to Barclays, was in May 2006 for €1.945bn. The new recapitalisation is expected to pay a further dividend for the private equity sponsors. The new facilities strip out the term loan A and the mezzanine inserting a new senior tranche and a larger second lien facility. The structure comprises: a seven-year €1.3bn of term loan B at 225bp; an eight-year €358m term loan C at 250bp; an eight-year €367m term loan E at 250bp, a €250m seven-year capex facility at 225bp, a six-year €200m RCF at 200bp, and a nine-year €595m second lien at 525bp. The loan has gone out to existing lenders and carries a consent fee of 20bp. Last time around the mezzanine tranche paid 8%, while the C tranche priced at 275bp and the E piece at 275bp.
Terreal
Target nation: France
Date announced: 29/05/07
Sponsor (s): LBO France
Mandated arranger (s): ING
Financing: €912.5m
The €912.5m debt package supporting LBO France’s recapitalisation of Terreal has allocated via mandated lead arranger ING. The facility launched prior to the turbulence now affecting the leverage market, and initially found a good response. However, later fund push back means there has been a flex across the structure. In addition an OID of 1% was offered on the B tranche. Debt is now split between a €150m seven-year term A loan paying 200bp up from 187.5bp over Libor, a €627.5m eight-year B loan at 250bp up from 225bp, a €45m seven-year revolver and €90m acquisition facility both now paying 200bp. In syndication banks were invited in as joint lead arrangers on tickets of €15m in the term loan A and the RCF, paying 50bp. Arrangers are offered tickets of €10 in loan A and the RCF, paying 40bp. The recapitalisation is levered at 6.2x and will pay a dividend to LBO France leaving €150m of cash equity in Terreal. Terreal is a maker of tiles and bricks.
TFL
Target nation: Germany
Date announced: 03/07/07
Sponsor (s): Odewald
Mandated arranger (s): Unicredit (HVB)
Financing: €200.2m
Unicredit through HVB as mandated lead arrangers and bookrunner is out with the €200.2m refinancing for TFL, a German chemicals company. The secured facility is split between a €23.7m seven-year amortising term loan A paying 200bp, an €56.8m eight-year term loan B paying 250bp, a €56.8m nine-year term loan C at 300bp, a €14.2m nine-and-a-half year second lien at 450bp, a €23.7m ten-year mezzanine tranche and a €25m seven-year revolver paying 200bp. Odewald bought out TFL from Permira in 2003. On the basis of the new debt, the company will have total senior debt leverage of 3.3x and total debt leverage of 4.3x. The senior debt leverage at the time of the buy-out was 3.1x, while the total debt leverage was 3.7x. TFL is the second largest global supplier of chemicals in the leather processing chemical industry.
VTG
Target nation: Germany
Date announced: 29/06/07
Sponsor (s): WL Ross
Mandated arranger (s): UniCredit (HVB)
Financing: €640m
VTG Group has mandated UniCredit (HVB) as sole mandated lead arrangers and bookrunner on the €640m of senior facilities that will be used to refinance €600.1m of debt dated December 14, 2005. The 2005 facility was backed by security on VTG’s fleet of rail cars. VTG group leases specialized rail freight wagons to the mineral oil, chemical, automotive and paper industries. The company had sales of €518.6m and an EBITDA of €112.9m in 2006. Q1, 2007 sales were €134.2m and the EBITDA €30.4m.
Source: IFR/EVCJ
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