CVC Gets Approval for Flint Debt Amendment

Private equity firm CVC Capital Partners has received approval to amend the terms on Luxembourg-based Flint Group‘s existing $1.8 billion loans, Reuters reported. Lenders to Flint agreed to extend the maturity of the debt by two years, which originally expired between 2013 and 2016, Reuters wrote.

(Reuters) – Private equity firm CVC Capital Partners [CVC.UL] has received the required lender approval to amend the terms on Luxembourg-based ink and pigment firm Flint Group’s existing $1.8 billion loans, banking sources said.

Lenders to Flint agreed to extend the maturity of the debt by two years, which originally expired between 2013 and 2016.

Lenders also agreed to relax banking covenants to give the company greater flexibility, said the sources. In addition, lenders gave the company enhanced operational flexibility, which would allow it to make acquisitions, the sources said.

In return for approving the amend-to-extend request, lenders will receive a 200 basis point increase on interest margins and a 50 basis point fee.

CVC last year shelved plans for an initial public offering (IPO) for Flint, which would have been used to reduce its existing loans to $1.3 billion from $1.8 billion.

CVC put a $1.3 billion leveraged loan pre-IPO financing in place in January 2010 which was contingent on an IPO taking place, but both the loan and the IPO were cancelled in May amid equity market volatility.

Flint Group is one of the largest suppliers to the printing and packaging industry worldwide and was formed by the merger of XSYS Print Solutions and Flint Ink Corporation in 2005 by owner CVC Capital.

(Reporting by Isabell Witt; Editing by Erica Billingham)