Target nation: UK
Date announced: 04/07/08
Sponsor: Doughty Hanson
20:20 Mobile Group has completed its financial restructuring. The restructuring includes a new equity investment of £15m from the company’s private equity backers, Doughty Hanson, as well as a significant reduction in its bank debt to £92m, led by an RBS-led bank consortium
The Crewe-based mobile phone distributor, the market leader in the UK, Ireland,
Sweden and Spain- will receive an injection of new capital which will support its drive to become a global player in mobile handset and accessory distribution.
The refinancing of the company will also see its consortium of banks, led by RBS, write down the net debt in 20:20 Mobile to £92m and receive 45% of the equity in the company.
Target nation: UK
Date announced: 05/07/08
Sponsor: Three Delta
Qatar Investment Authority-backed financial sponsor Three Delta is reported to have committed an extra £100m of equity into Four Seasons Healthcare to avoid breaching banking covenants, but has failed so far to secure lender support to refinance its £1.2bn debt package.
The debt backed Three Delta’s £1.4bn buyout of Four Seasons from Allianz Capital Partners in late 2006. The lending group includes RBS and Credit Suisse.
The deal is just one of a number of struggling property-exposed investments by Three Delta, an investment vehicle run by ex-NatWest head of structured finance Paul Taylor, prompting QIA to seek to secure exclusive control of the Three Delta as a step to work out at the portfolio level.
Target nation: Netherlands
Date announced: 19/07/08
The management of Dutch gaming arcades operator JVH Gaming has appointed Houlihan Lokey to advise on its negotiations with lenders. Creditors are reported to have hired KPMG.
Benelux-based Waterland Private Equity Investments acquired the business in a 2006 buyout backed by CIBC World Markets and Bank of Ireland, which arranged and syndicated €173m of debt backing the buyout.
The €173m senior debt was made up of loans A, B and C – each for about €40m – and a revolver of around €53m, which follows a standard pricing structure. There is also a €33m mezzanine tranche.
Last year CIBC and Bank of Ireland closed a further €90m add-on to the existing debt. It was made up of senior debt with a small mezzanine component. Syndication was mainly to the existing investor group and closed significantly oversubscribed, with the mezzanine piece more than three times covered.
In common with gaming operators elsewhere in Europe JVH has run foul of a smoking ban, and has also suffered from Dutch tax changes.
Date announced: 23/07/08
Labco, a European medical diagnostics network, has announced a new capital structure featuring €258m of equity, €300m in new senior debt with a possible extension of €50m and €120m in mezzanine financing.
The equity includes a €140m investment from new investor 3i, with existing shareholders CIC Finance, TCR Capital and Natixis Investment Partners contributing €60m to the share capital increase. In addition employees and managers will contribute €58m.
Under the Labco model all of the network’s constituent clinical laboratories are managed independently with each being a partner in the larger group.
The €300m to €350m senior debt facilities are being provided by bookrunners and mandated lead arrangers Natixis and CIC. ICG will provide €120m in senior and junior mezzanine debt.