One Austria launches restructured debt
• Morgan Stanley, SG and RBS as MLAs have launched syndication of the €1.325bn loan backing the buyout of One Austria. The deal has been restructured to reflect post market crunch conditions. The restructuring has shifted facilities from the senior to the junior pieces, increased the number of financial covenants to a full four from two, and added an 18-month non-call clause to the B&C tranches and non-call three to the second-lien and mezzanine pieces. In addition leverage has been reduced from 5.4x on the senior debt to 4.4x and from 7.1x to 6.6x through the entire package. The debt is split between a €375m eight-year term loan B paying 275bp over Euribor, a €375m nine-year term loan C at 350bp and a €200m 10-year mezzanine tranche paying 925bp. Undrawn debt totals €200m split between a revolver and capex and pays a 275bp margin. There is an additional €175m 9-1/2-year second-lien facility that pays 437bp and is not being syndicated. A substantial part of the mezzanine was pre-placed with an anchor investor ahead of syndication.
• Bookrunners Citi, Goldman Sachs and Merrill Lynch, with MLAs ABN AMRO and UBS have launched general syndication of the US$1bn revolving element of the US$14bn senior loan package supporting Basell‘s US$19bn acquisition of US-based Lyondell Chemical. The deal is the latest major transaction to stall since the latest downturn in sentiment. The dollar-denominated US$1bn revolver pays 300bp over Libor. Senior debt is split between a US$2bn term loan A paying 300bp over Libor, a US$9.45bn term loan B at 325bp, an asset backed loan facility split between a US$1.15bn assets receivables piece paying 150bp and a US$1bn inventory backed piece paying 175bp, plus a revolver. A further US$8bn is being held as a bridge to a mix of 144a senior secured second-lien and senior unsecured notes. The high-yield bonds will be marketed to investors on both sides of the Atlantic but are likely to be sold mainly into the US.
GET financing launched
• BNP Paribas and RBS as MLAs and bookrunners have launched syndication of the NKr3.71bn (€462m) debt package supporting Quadrangle and GS Capital’s secondary buyout of GET, a Norwegian cable operator. Senior syndication is aimed at existing investors as well as Nordic banks mandated to back rival offers for the business. Senior debt is split between a NKr525m seven-year term loan A paying 250bp over Libor, a NKr1bn eight-year term loan B at 275bp split between NKr368m in kroner and NKr631.25m in euro, and a NKr1bn nine-year term loan C at 325bp split between NKr368m in kroner and NKr631.25m in euro. In addition there is a NKr300m capex facility paying 250bp and a NKr200m revolver at 250bp. Junior debt is split between a NKr685m euro equivalent mezzanine loan paying 400bp cash and 500bp PIK.
• The £260m loan backing Och-Ziff‘s buyout of HSS, the UK tool hire business, has closed through MLAs Barclays and SG. The result is said to be disappointing. At launch, debt was split between a £90m eight-year term loan B priced at 275bp, a £90m nine-year term loan C at 325bp, a £40m seven-year capex line at 225bp, a £20m seven-year revolver at 225bp and a 9-1/2-year £20m second-lien piece priced at 525bp. Lenders are invited to join on tickets of £20m earning 150bp or £15m paying 125bp. The leverage is 4.3x in total and 3.9x on the senior debt. HSS was sold by 3i for about £300m.
• Bookrunners Goldman Sachs, Lehman Brothers and RBS have closed and allocated the £955m refinancing of PHS Group, a UK corporate facilities services group. The deal was originally launched in July but withdrawn as a result of the summer market crash. The deal was placed at an OID of 96.5 on the senior facilities, and traded broadly in line with that level in the secondary market. The deal is split between a £340m term loan B paying 250bp over Libor, a £340m term loan C paying 350bp, a £25m reverse credit facility paying 200bp and a £125m capex and acquisition finance loan paying 225bp. A £125m 9-1/2-year second-lien facility pays 450bp over.
• The €220m acquisition and refinancing facilities for Cerba European Lab, mandated to Natixis, have closed in a club deal. The facilities, which fund the acquisition of Bar Group and the refinancing of LBO debt, are split between a seven-year €5m revolver paying 225bp over Euribor, a 7-1/2-year €40m acquisition and capex line paying 225bp, a seven-year €80m term loan A loan at 225bp, an eight-year €50m term loan B at 275bp, a nine-year €30m term loan C at 325bp and a 9-1/2-year €15m second-lien tranche. Based on a consolidated pro forma Ebitda to year-end 2007 of €38.4m, senior leverage is 4.2x, second-lien leverage is 4.6x and the total leverage is 5.3x.
• The Bank of Scotland and Dresdner Kleinwort as MLAs will launch the debt supporting DIC’s buyout of Alliance Medical in the first quarter of next year. The lead duo is in talks with existing bank lenders and DIC relationship banks with a view to them taking cornerstone positions prior to launch.
Danske mandated for Coor
• The circa SKr3bn debt facility backing Cinven‘s buyout of Coor Service Management from 3i has been mandated to Danske Bank, DnB Nor and RBS. The facility will have both senior and mezzanine tranches. Coor is a Nordic provider of facility management services. It employs some 3,700 people in Sweden, Denmark, Norway, Finland and Belgium. It was previously part of Skanska. In the 12 months to June 2007 it had revenues of €440m.
• UBS is mandated to arrange a circa €200m debt package supporting Rhone Capital and Zarkona Trading’s buyout of Infote, OTE‘s yellow pages business. Launch of the senior and mezzanine loan will follow next year.