Refinancings arranged in May

Algeco

Target nation: France

Date announced: 02/05/07

Sponsor (s): TDR Capital

Mandated arranger (s): Barclays and RBS

Financing: £57.2m add on

Algeco has closed oversubscribed its £57.2m add-on to its €880m recapitalisation of last year, via bookrunners Barclays and RBS. The add-on is sterling denominated because it is to fund a UK acquisition. The add-on is split equally between the B and C tranches, which pay 237.5bp and 275bp over Libor respectively. The rest of senior debt comprises a €175m seven-year A loan at 225bp over Euribor, a €187.5m eight-year B loan at 250bp, a €187.5m nine-year C loan at 300bp, a €50m seven-year at 225bp and a €30m seven-year capex facility at 250bp. There was also a €100m nine-and-a-half year second lien facility and a €150m mezzanine loan.

Alma Consulting Group

Target nation: France

Date announced: 27/04/07

Sponsor (s): Apax Partners

Mandated arranger (s): RBS

Financing: €308m

Alma Consulting Group has mandated RBS to arrange a refinancing of the €308m loan that backed Apax Partner’s buyout of the company last year. The deal will be done on a consensus and waiver basis. The 2006 deal comprised a €263m senior tranche and a €45m mezzanine piece. Alma Consulting is a French financial advisory group.

Almatis

Target nation: Germany

Date announced: 27/04/07

Sponsor (s): Rhone Capital

Mandated arranger (s): UBS

Financing: US$920m

Bookrunner UBS has been mandated on a US$920m recapitalisation of Almatis. The new facilty will be made up of first and second lien with a PIK piece and will take out the existing structure. Syndication will launch Monday with a bank meeting Friday.

In February last year the same bookrunner reverse flexed the then US$615m facility backing the recapitalisation of Almatis by 25bp on the B, C and second lien tranches after a strong response from the market. The flex meant that deal comprised a US$150m seven-year term loan A at 225bp over Libor, a US$175m eight-year term loan B at 250bp, a US$175m nine-year term loan C at 300bp, a US$40m seven-year revolver at 225bp and a US$75m nine-and-a-half year second lien piece at 625bp over Libor. Almatis produces specialty alumina materials, absorbents and catalysts. Rhone Capital is the sponsor.

Balta

Target nation: France

Date announced: 04/05/07

Sponsor (s): Doughty Hanson

Mandated arranger (s): Credit Suisse

Financing: €210m

Credit Suisse has launched a €210m term loan B facility to replace the C loan and mezzanine components on Balta’s €575m LBO loan. The Belgian carpet maker is owned by sponsor Doughty Hanson. Balta’s existing debt was put in place in 2004, with senior debt is split into a €160m seven-year term loan A paying 225bp over Euribor, a €87.5m eight-year term loan B at 275bp, a €87.5m nine-year term loan C at 325bp, a €80m seven-year acquisition facility at 225bp and a €40m seven-year revolver at 225bp. 50% of tranches B and C was earmarked for financial institutions. Opening leverage is 4.8x total net debt to EBITDA and senior leverage is 3.5x.

Doncasters

Target nation: UK

Date announced: 26/04/07

Sponsor (s): Dubai International Capital

Mandated arranger (s): Credit Suisse and RBS

Financing: £940m

Bookrunners Credit Suisse and RBS will launch a general syndication phase of the £940m Doncasters facilities following initial syndication to existing investors. The facilities will to refinance existing debt and finance the add-on acquisition of FastenTech. The new facilities are made up of £300m each in B and C tranches paying 250bp and 300bp over Libor respectively. A £75m revolver and £85m acquisition facility paying 225bp, £72.5m in second lien facilities paying 450bp, a £57.5m mezzanine piece paying 4% and a £50m PIK loan paying 5%. Banks are invited on £40m for 105bp, £30m for 90bp fee and £20m for 80bp. In 2006 sponsor Dubai International Capital’s (DIC) signed a £491m facility backing its Doncaster buyout from Royal Bank of Scotland Equity Finance. Doncasters is a UK based precision-engineering business

Global Garden Products

Target nation: Italy

Date announced: 27/04/07

Sponsor (s): ABN AMRO Capital

Mandated arranger (s): Credit Suisse

Financing: €545m

Bookrunner Credit Suisse has launched a €545m refinancing of the 2003 facility that backed the buyout of Italy’s Global Garden Products. The new facility is made up of €505m senior debt and €40m in second lien debt. Senior facility consists of a €75m term loan A paying 200bp over Euribor, a €125m term loan B paying 250bp, a €125m term loan C paying a 300bp, a €180m revolver paying 200bp with the second lien paying 500bp over Euribor. There is a 70% institutional carve out on the B&C tranches. Banks are invited to join on €25m for 75bp and €15m paying 60bp. Milan based Global Garden Products is Europe’s biggest manufacturer of garden machinery and equipment.

Grupo Coin

Target nation: Italy

Date announced: 03/05/07

Sponsor (s): PAI

Mandated arranger (s): Barclays

Financing: €75m PIK loan

Grupo Coin has secured a €75m PIK loan, through bookrunner Barclays. Proceeds were for a dividend as part of a recapitalisation. The recapitalisation of the €600m loan that funded PAI’s buyout of the company in 2005 was done on a corporate club basis among Italian banks.

Iceland Foods

Target nation: UK

Date announced: 11/05/07

Sponsor (s): Baugur Group

Mandated arranger (s): Deutsche Bank and Landsbanki

Financing: £370m

UK frozen food retailer Iceland Foods has closed and allocated its £370m recapitalisation, through mandated lead arrangers Deutsche Bank and Landsbanki. The facility closed oversubscribed with the B, C and mezzanine tranches flexed down as a result. Senior debt is now split between a £110m seven-year term loan A paying 225bp over Libor, a £90m term loan B at 225bp down from talk of 275bp, a £90m term loan C at 275bp down from talk of 300bp and a £20m revolver. Meanwhile the £190m mezzanine loan now pays 8.75% down from the initial guidance of 10.5%. The Baugur Group acquired Iceland Foods, then called The Big Food Group, in February 2005.

Kwik-Fit

Target nation: UK

Date announced: 01/05/07

Sponsor (s): PAI

Mandated arranger (s): Barclays and Deutsche Bank

Financing: £672.5m

Kwik-Fit has closed syndication the recapitalisation and repricing of the £672.5m loan that backed its PAI’s supported buyout in 2005. Barclays and Deutsche Bank are bookrunners. The facility is oversubscribed and a downward flex is now being considered. The new deal sees the £140m term loan A and the £135m term loan C folded into the existing £135m term loan B and new money being put into the B tranche and the second lien tranche to fund the recapitalisation. Debt now comprises a £518m six-year term loan B at 237.5bp over Libor, a £11m eight-year second lien tranche at 525bp, a £50m five-year revolver at 200bp and a £40m five-year revolver at 200bp. In syndication lenders were offered a 20bp consent fee.

Linpac

Target nation: UK

Date announced: 20/04/07

Sponsor (s): Montagu Private Equity

Mandated arranger (s): Deutsche Bank

Financing: £568m

Linpac has closed its £568m recapitalisation, through mandated lead arranger Deutsche Bank. The facility closed well oversubscribed and is now in documentation with no flex planned. The all-senior facility is split between a £120m seven-year term loan A paying 212.5bp over Libor, a £204m eight-year term loan B paying 250bp, a £204m nine-year term loan C at 300bp and a £40m revolver at 212.5bp. As well as refinancing debt, the facility pays a sponsor dividend to Montagu Private Equity.UK-based packager Linpac was bought out back in 2003, in a transaction that was backed by £713m leveraged loan. This Deutsche Bank facility had to be re-cut and was eventually signed as a £508.1m loan.

MACH

Target nation: Luxembourg

Date announced: 26/04/07

Sponsor (s): Warburg Pincus

Mandated arranger (s): SG and UBS

Financing: €510.2m

MACH is in the market with a €510.2m leveraged loan to support its acquisition of Sibernet and refinance the debt that backed sponsor Warburg Pincus’ buyout of the company in 2005. SG and UBS are bookrunners. Senior debt comprises a €90m seven-year term loan A at 200bp over Euribor, a €147.6m eight-year term loan B at 250bp, a €147.6m nine-year term loan C at 300bp, a €30m seven-year revolver at 200bp. Subordinated debt comprises a €50m nine-and-a-half year second lien tranche at 475bp and a €45m 10-year mezzanine tranche paying 4.25% cash and 4.5% PIK. Leverage is 6.7x total net debt to EBITDA, 6x through the second lien and 5.3x senior. Banks will earn 65bp for €25m and 50bp for €15m.

Mivisa

Target nation: Spain

Date announced: 07/04/07

Sponsor (s): CVC

Mandated arranger (s): ING and SG

Financing: €527m

Mivisa is set to flex margins down on its €662m debt recapitalisation loan, mandated to ING and SG. The B tranche and second lien of the facility were nearly four times oversubscribed. The senior debt is split between a €500m eight-year term loan B paying 250bp over Euribor, a €70m seven-year revolver at 200bp and a €20m amortising capex at 200bp. In addition there is a €72m nine-and-a-half-year second lien. Mivisia is Europe’s third largest metal packaging manufacturer in the food industry. CVC bought out the company in December 2004.

Prysmian

Target nation: Italy

Date announced: 03/05/07

Sponsor (s): Goldman Sachs Private Equity

Mandated arranger (s): Citigroup, Intesa Sanpaolo, JP Morgan and UniCredit

Financing: €1.7bn

Prysmian will launch a €1.7bn crossover transaction at the end of next week with Citigroup, Intesa Sanpaolo, JP Morgan and UniCredit as bookrunners. Two more banks are expected to join as MLAs before general syndication. The deal, which will refinance existing debt of €1.9bn supporing the buyout of Prysmian by Goldman Sachs Private Equity last year, will be part-loan. Prysmian has recently raised money through an IPO and some of the proceeds from the equity offering will be used in the refinancing. Prysmian is a cables and system company that was spun out of Pirelli.

Rexel

Target nation: France

Date announced: 20/04/07

Sponsor (s): Clayton Dubilier & Rice, Eurazeo and Merrill Lynch Private Equity

Mandated arranger (s): Paribas, Calyon, HSBC and RBS

Financing: €2.1bn

French electronic parts distributor Rexel’s €2.1bn five-year pre-IPO financing has launched, via bookrunners BNP Paribas, Calyon, HSBC and RBS. The five-year facility is made up of a €1.6bn A loan which will refinance debt and a €500m B loan for general corporate purposes and acquisitions. Pricing will ratchet between 30bp and 135bp over Euribor along a debt-to-EBITDA grid. Sponsors Clayton Dubilier Rice, Eurazeo and Merrill Lynch Private Equity filed plans on February 22 for an IPO expected in October 2007. The IPO is expected to raise €800m, if the equity offer raises in excess of €900m then part of the A loan will be paid down.

TDF

Target nation: France

Date announced: 20/04/07

Sponsor (s): Texas Pacific Group

Mandated arranger (s): BNP Paribas and Citigroup

Financing: Unknown

Investors are unhappy but seem resigned to the likely success of a tender approach for an aggressive repricing of the €3.97bn loan that supported Texas Pacific Group’s buyout of Telediffusion de France (TdF). The original blowout syndication was unchecked by the aggressive 8x debt ratio. The amendment is being sought through bookrunners BNP Paribas and Citigroup. The bookrunners are looking to reduce margins across almost all of the debt, with the A margin cut by 25bp to 175bp over Euribor, the B margin cut by 25bp to 200bp over Euribor and the C margin reduced from 275bp to 225bp over Euribor. In addition, investors will be presented with a new price range on the second lien with a minimum reduction of 100bp to a new maximum margin of 350bp. Existing revolving credit facilities will not be affected. There is no waiver fee in place, but the new package would include 101 soft call protection in the event of any further repricing in the next 12 months. That will be of little comfort to investors but any reaction is likely to be muted given the credit’s popularity and the highly liquid market.

TdF is a singularly strong credit which investors will be loath to give up. The business is one of the largest providers of over-the-air and wireless services to broadcasters and telecom operators in Europe. In its French home market it has a monopoly in broadcasting public TV and radio and a very strong position with the commercial TV and radio companies. It also has strong relationships with all three French mobile operators, Orange, SFR and Bouygues. The original high leverage could be applied to the deal given TDF’s high cash conversion ratio and the long term contractual nature of its business – which make it in effect an infrastructure investment.

The original facility closed hugely oversubscribed last year, through bookrunners BNP Paribas, Citigroup, HSBC, Merrill Lynch and Morgan Stanley. It was subject to both a structural flex that saw the mezzanine tranche dropped and spread among the second-lien, B and C tranches. And a price flex take 12.5bp off the B and C tranches.

In late 2006 TPG reached agreement with majority shareholder Charterhouse (55%) to acquire the operator of transmission towers for the audiovisual, mobile telecom and broadband media. Caisse des Depots et Consignation and CDC Enterprises hold stakes of 30% and 14% respectively.

Thule

Target nation: Sweden

Date announced: 26/04/07

Sponsor (s): Candover

Mandated arranger (s): RBS

Financing: SEK8.7bn

Thule, the car accessory manufacturer, is raising SEK8.7bn, through bookrunner RBS.

The facility consists of a term loan A of SEK700m at 200bp ovber Libor, a term loan B of SEK2.5bn at 250bp, a term loan C of SEK2.5bn, a PIK of SEK1.65bn that will be priced through a bookbuild. There is also SEK700m seven-year revolver at 200bp and an acquisition line of SEK650m at 200bp. Thule is based in Sweden and majority-owned by Candover. In 2006, it had sales of SEK4.2bn and an EBIT, before depreciation and one-offs, of SEK493m.

Vetco Aibel

Target nation: Norway

Date announced: 02/05/07

Sponsor (s): 3i, Candover and JPMorgan Partners

Mandated arranger (s): Credit Suisse

Financing: US$814m

Bookrunner Credit Suisse is out with a price flex request for the B&C tranches of the US$814m refinancing of Norwegian upstream oil and gas production facilities provider Vetco Aibel. DNB Nor Bank is mandated lead arranger. The facility closed oversubscribed and will allocate next week. The flex will see 25bp taken off both B&C tranches, from 250bp to 225bp and from 300bp to 275bp respectively. The facility is made up of: a US$225m bonding facility, a US$125m revolver, a US$43m A tranche and B and C tranches of US$123m each. Banks were invited to join on US$25m and US$30m. Aibel is owned by sponsors 3i, Candover and JPMorgan Partners who generated 3.5x their original investment in Vetco with the US$1.9bn sale earlier this year of Vetco Gray. The investors acquired equal stakes in their US$925m buyout of part of ABBs oil and gas business, which included US$653m of debt and mezzanine finance provided by JPMorgan, Bank of Scotland and CSFB as lead arrangers and DNB Nor bank as guarantee co-ordinator. The business, renamed Vetco International, was recapitalised twice, in March and December 2005, for an undisclosed amount.

Vinnolit

Target nation: Germany

Date announced: 19/04/07

Sponsor (s): Advent International

Mandated arranger (s): Dresdner Kleinwort

Financing: €495m

Bookrunner Dresdner Kleinwort is out with the €495m refinancing for PVC manufacturer Vinnolit, an Advent company. Leverageon the all senior deal starts at 2.6x. Debt is split between a seven-year term-loan A paying 225bp over Libor, an eight-year term loan B at 250bp, a nine-year term loan C at 300bp and a nine-and-a-half-year term loan D at 375bp. As well as refinancing proceeds will fund the conversion of two of the company’s electrolysis plants from mercury based technology to the environmentally friendly membrane technology. As well as being beneficial for the environment the energy savings will enhance EBITDA margins. The refinancing will not fund a dividend. Advent bought out Vinnolit in 2001 backed by a Dresdner arranged DM300m loan. Dresdner also arranged a €335m recap for Vinnolit in July 2005.

Welcome Break

Target nation: UK

Date announced: 03/05/07

Sponsor (s): Investcorp

Mandated arranger (s): Calyon and RBS

Financing: £325m

Welcome Break Group has launched its £325m senior recapitalisation, through bookrunners Calyon and RBS. The margin is 150bp out-of-the-box. The tranches are a term loan A of £295m, a capex line of £15m and a revolver of £15m. Lead arrangers on £30m will earn 65bp. Welcome Break Group is an operator of motorway service areas and has a UK market share of 26%. It was acquired by Investcorp in 1997 and since then Welcome Break has found the financial road bumpy. The creditors of Welcome Break Finance (WBF), the issuer of Welcome Break bonds, appointed administrative receivers in 2005. The present loan will cover both the recapitalisation of existing debt and provide a dividend for Investcorp.