Target nation: UK

Date announced: 22/06/07

Sponsor: Dubai International Capital

Mandated arrangers: Credit Suisse and RBS

Financing: £940m

The £940m debt package for Doncasters, mandated to Credit Suisse and RBS, has allocated following a reinstatement of the initial pricing on the B, C and second lien tranches. The 100bp price cuts on both the mezzanine and PIK tranches remain in place.

The B and C had been flexed down by 25bp each prior to the credit market turbulence, and second lien had seen its pricing reduced by 50bp. The senior debt is structured as follows: a £300m B tranche paying 250bp over Libor, a £300m C tranche at 275bp, a £75m revolver at 225bp and £85m acquisition line at 225bp. The £72.5m second lien loan pays 450bp and the £57.5m mezzanine piece pays 362.5bp on the cash piece and 437.5bp on the PIK piece. The £50m PIK loan is priced at 1050bp. Banks were invited on £40m for 105bp, £30m for 90bp fee and £20m for 80bp. The deal refinances existing debt as well as the add-on acquisition of FastenTech.


Target nation: UK

Date announced: 09/08/07

Sponsor: Inflexion Private Equity

Mandated arrangers: Lloyds TSB

Financing: £5m debt and working capital facility

Inflexion Private Equity has refinanced Somerset-based Ilchester Cheese Company, a leading producer of blended cheese following years of successful trading.

Originally acquired through an MBO by Inflexion in December 2004, Ilchester Cheese has experienced a significant increase in number of staff and turnover. The refinancing is part of Inflexion’s commitment to increase value and maximise growth opportunities in its portfolio companies.

Since acquisition, Inflexion has increased capital expenditure in Ilchester by 70%; investing heavily in the company’s manufacturing capabilities, new product development resources and requisite expansion of its sales and marketing team. These developments have been reflected in the company’s growing revenues and expanding international scope.

The transaction was led by Iain Jamieson, Portfolio Director of Inflexion and Non-executive Director of Ilchester. Lloyds TSB provided the £5m debt and working capital facility for the refinancing. Inflexion was advised by SJ Berwin. Ilchester was advised by Burges Salmon and Grant Thornton, Bristol provided the financial due diligence.


Target nation: Germany

Date announced: 27/08/07

Sponsor: EQT

Mandated arrangers: Commerzbank, Dresdner Kleinwort and Unicredit

Financing: €450m and US$260m

Tognum has completed its €450m and US$260m senior loan through mandated lead arrangers Commerzbank, Dresdner Kleinwort and Unicredit. The facility scored a decent oversubscription resulting in a scaleback of around a third. Joining the leads as arrangers are BayernLB, Deutsche Bank, DZ Bank, Fortis, Helaba, ING, KfW, Mizuho Corporate Bank, LBBW and the RBS. In syndication lead arrangers were invited on a single €60m equivalent ticket for 17.5bp. The five-year loan has two one-year extension options and is split between a US$260m term loan A1, a €100m term loan A2 and a €350m revolver. The margin is set at an initial 40bp over Euribor/Libor with a commitment fee of 30% of this figure payable on undrawn balances.


Target nation: Germany

Date announced: 29/06/07

Sponsor: WL Ross

Mandated arranger: UniCredit (HVB)

Financing: €640m

General syndication of the €640m in senior facilities for VTG, mandated to UniCredit (HVB) as mandated lead arranger, has closed following an oversubscription and scale-back of around one-third. The facility comprises an eight-year c. €440m amortising term loan; an eight-year €100m bullet capex facility; an eight-year €50m revolver and an eight-year €50m guarantee facility. Proceeds refinance €600.1m in debt dated December 14 2005 and will be used for company growth. VTG is based in Hamburg and specialises in rail logistics. In Q1 2007 it had sales of €134.2m and an EBITDA of €30.4m.

Source: IFR loans/EVCJ