Xella closes

Building materials group Xella has closed syndication of €970m of debt backing the PAI and Goldman Sachs Capital Partners buyout of the business from Haniel. Bookrunning mandated lead arrangers are BNP Paribas, RBS, UniCredit (HVB) (global co-ordinators) with Calyon and LBBW. They were joined ahead of general syndication by Erste Bank, KfW, Mediobanca, Commerzbank, HSH Nordbank, WGZ and GE.

The deal closed on November 28 with all mandated lead arrangers reaching their target hold levels. Bookrunners said they closed the deal at the launch price.

“The deal launched at 25bp over what was the going rate in September. The issue investors had to get over was the construction sector; once they did, price was not an issue,” said one.

Facilities are split between a €270m seven-year term loan A paying 300bp over Euribor, a €275m eight-year term loan B paying 375bp over, a €275m nine-year term loan C paying 425bp over, a €75m seven-year revolving credit facility paying 300bp over and a €75m seven-year acquisition/capex line paying 300bp over.

Net senior and total leverage at closing was 2.9 based on 2007 adjusted Ebitda of €271m, and has since fallen to 2.7 based on July 2008 adjusted LTM Ebitda. Equity and quasi-equity is approximately 50%.

The €470m debt package for N&W Global Vending continues to win commitments, and is now oversubscribed, though not closed. Bookrunners are Bank of Ireland, Barclays, BNP Paribas, Calyon, ING, Intesa Sanpaolo, Natixis and SG.