CIBC World Markets and Morgan Stanley have launched syndication of the EURO825 million leveraged recap facility for Xerium, the Apax Partners-backed paper-making machine parts company formerly known as BTR Paper.
The facility comprises a EURO350 million seven-year term loan A at 225bp over Euribor, a EURO150 million eight-year term loan B paying 275bp over Euribor, a EURO150 million nine-year term loan C at 325bp over Euribor and a EURO50 million seven-year revolving credit paying 225bp over Euribor. There is also a EURO125 million tranche of 10-year warrantless mezzanine. Co-lead arrangers are invited to commit EURO100 million to the senior debt and/or EURO10 million on the mezzanine.
Xerium was put on the auction block by Apax in April, and JP Morgan Partners and GTCR Golder Rauner were competing for the business with a potential $1 billion bid.
The company was last seen tapping the loan market this May when CIBC arranged a $67.5 million senior debt add-on which was used to repay a $67.5 million subordinated debt tranche from the company’s buyout in November 1999. That add-on to the B and C tranches of the original senior debt was successfully sold to the existing syndicate.