Second look

ING and UBS have arranged a €445m debt package to back Doughty Hanson‘s secondary buyout of TMF Group from Silverfleet Capital.

TMF provides outsourced management and accounting services. It has grown through a string of international acquisitions and has a staff of 25,000 professionals in 79 offices.

Debt facilities include €265m of senior term facilities, a €100m mezzanine facility and €80m of undrawn facilities in the form of a revolver and an acquisition facility.

The capital structure includes over 50% equity contribution from Doughty Hanson and management. UBS also acted as exclusive financial adviser to Silverfleet Capital and TMF.

Debt backing the LBO of Xella International has been arranged by global co-ordinators and mandated lead arrangers BNP Paribas, RBS, UniCredit (HVB) and mandated lead arrangers Calyon and LBBW.

Facilities back the PAI Partners and GS Capital Partners acquisition of the German construction supplies business.

The all-senior deal is made up of €820m of drawn A, B, C facilities and €120m of undrawn facilities. Leverage is 2.9 through total debt. The deal is supported by a strong vendor loan and equity contribution.

The acquisition is expected to be completed before the end of the summer. Lead arrangers said that in addition to the five arranging banks, a number of others have already committed to the deal.

Xella operates in Germany and Eastern Europe. People familiar with the matter said the deal had already attracted reverse enquiry thanks to low leverage and the company’s exposure to the Eastern European rather than more developed and troubled West European property sector.

Umbrellastream has launched syndication of the US$2.4bn debt backing the buyout of Expro. Umbrellastream is the acquisition vehicle of a consortium of Candover, Goldman Sachs Capital Partners and AlpInvest Partners. Expro is a global oilfield services business.

Mandated lead arranger and co-ordinator is RBS, with mandated lead arrangers HSBC, Lloyds TSB, RBC Capital Markets, DnB NOR and Calyon and JLA HBOS.

Despite the acquisition being funded and closing in sterling, the facilities have been redenominated in US dollars and include US$1.6685bn of senior secured facilities.

Debt is split between a US$404.2m amortising seven-year TLA paying 300bp over Libor, a US$472.2m eight-year bullet TLB paying 350bp, and a US$472.2m nine-year bullet TLC paying 400bp. The deal includes a US$175m institutional carve-out of the TLB and TLC.

Unfunded tranches include a US$160m RCF and a US$160m capex/acquisition facility, both priced at 300bp.

Junior debt is a huge US$724.4m 10-year mezzanine facility which has been largely pre-placed. The mezz pays 10% – 4.25% cash and 5.75% PIK – and comes with call protection: non-call two, 102, 101.

Ticket sizes are US$60m, US$40m and US$25m, with fees of 145bp, 112.5bp and 87.5bp respectively.

Leverage is 3.94 for senior and 6.06 for total, and equity represents 51.5% of the total net capitalisation. A bank meeting will be held in London this Wednesday.

CVC has launched general syndication of the debt supporting its €800m buyout of Taminco of Belgium, which produces alkylamines and derivatives used in the chemicals industry. The buyout was originally announced in July last year. Bookrunners are Dresdner Kleinwort, Merrill Lynch, Rabobank and non-active bookrunner Fortis.

General syndication follows a senior phase aimed at relationship banks.

Debt of €600m is made up of a €100m seven-year revolver paying 225bp over Euribor, a €99m seven-year term loan A paying 237.5bp, a €180m eight-year term loan B paying 275bp and a €180m nine-year term loan C paying 325bp.

The deal also includes a €120m second-lien tranche, which has been pre placed – either priced up to mezzanine-type levels and sold or held by the bookrunners.

The €550m debt package supporting Carlyle‘s buyout of Greek chemicals group Neochemiki has closed oversubscribed. Lead banks Dresdner Kleinwort, Emporiki Bank, Millennium Bank, Piraeus Bank and Proton Bank were joined by the National Bank of Greece before launch.

Senior debt was split between a €145m seven-year term loan A paying 225bp over Euribor, a €120m eight-year term loan B at 275bp, a €120m nine-year term loan C at 325bp, a €75m seven-year revolver at 225bp and a €50m seven-year capex facility at 225bp. An additional €40m subordinated tranche was pre-placed.

Leveraged based on 2007 Ebitda opened at 3.9 for senior rising to 4.3 for total debt.