3i Buys Etanco with $280M in Debt

British buyout shop 3i has secured 205 million euros ($280 million) in loans to back its acquisition of French building fastener and fixing company Etanco from IK Investment Partners, Reuters reported Wednesday. French banks CIC, Credit Agricole and Societe Generale are arranging the debt package. European private equity firm IK Investment Partners acquired Etanco in 2008 backed by 172 million euros of debt according to Thomson Reuters, publisher of PEhub.

(Reuters) – British private equity firm 3i’s acquisition of French building fastener and fixing company Etanco from IK Investment Partners is backed by 205 million euros ($280 million) of loans, sources close to the deal said on Wednesday.

French banks CIC, Credit Agricole and Societe Generale are arranging the debt package which includes a 75 million euro term loan A paying 450 basis points (bps) over EURIBOR; an 85 million term loan B paying 500 bps over EURIBOR; and a 15 million revolving credit facility and 30 million capital expenditure facility both paying 450 bps over EURIBOR, sources said.

The term loan B matures in seven years while the other facilities mature in six years.

3i declined to comment.

A bank meeting has been set for Monday in Paris when the deal will launch to wider syndication, the sources said.

3i announced its acquisition of a majority stake in Etanco last week, a deal which will also see incumbent chief executive Ronan Lebraut re-investing in the business and retaining a 25 percent stake.

European private equity firm IK Investment Partners acquired Etanco in 2008 backed by 172 million euros of debt according to Thomson Reuters LPC.

Etanco, founded in 1952, is a leader in the design, manufacturing and distribution of building fastener and fixing systems. It is headquartered near Paris with 600 employees. ($1 = 0.731 euro) (Editing by Dan Lalor)