Ares Management and GE Capital are mandated lead arrangers for the senior unitranche facilities for Ethypharm, a French portfolio company of Astorg Partners. Proceeds of the facilities will be used to refinance existing indebtedness and fund future acquisitions.
Ares Management and GE Capital have acted as Mandated Lead Arrangers for €170 million of senior unitranche facilities for Ethypharm, a French portfolio company of Astorg Partners. Proceeds of the facilities will be used to refinance existing indebtedness and fund future acquisitions.
This financing represents the fourth transaction from GE Capital and Ares Management’s European Senior Secured Loan Programme (ESSLP) joint venture for unitranche funding. The €1.75bn programme is the first of its kind in the European debt market to provide flexible unitranche financing solutions to European mid-market borrowers. The ESSLP has deployed more than €550MM over the last 12 months.
Camille Frizon de Lamotte, Executive Director at GE Capital, said: “This deal is our first unitranche financing in France and highlights the strengths of our unitranche offer as a compelling alternative to existing finance structures. We were able to add value through speed of execution and lower cost compared to a classic senior mezzanine structure, and also provided undrawn facilities to the company.”
“This investment illustrates our ability to swiftly deliver flexible financing solutions and follow-up investments to growing companies,” said Aurélien Loszycer, Director at Ares Management. “We have been able to structure and pre-agree to all necessary financings for bolt-on acquisitions, allowing Ethypharm to execute its strategic shift into the specialty pharmaceutical field.”
Through the Unitranche structure, GE Capital and Ares were able to provide Ethypharm with a one-stop financing solution, making available undrawn and term facilities.
“Astorg and Ethypharm’s management are committed to managing the transformation of Ethypharm into a world-class specialty pharmaceutical company, focusing on the treatment of pain and addictions,” said Thierry Timsit, Partner at Astorg and non-executive Director at Ethypharm. “The flexible and efficient unitranche financing provided by Ares and GE Capital is a key milestone, which will greatly enhance our ability to invest in both R&D and add-on acquisitions.”
About GE Capital
GE Capital International is a leading, global provider of specialist finance to the mid-market, with headquarters in London and serving customers from 26 markets across EMEA and Asia Pacific.
With over 27,000 employees and revenues of $12B, GE Capital International is focussed on driving growth in its core commercial leasing & lending products and markets. It provides mid-market customers with a wide range of financing solutions including accounts receivable management, inventory finance, asset backed lending, cross-border financing, leveraged finance, leasing/vendor finance and fleet management solutions.
GE Capital International focuses on sectors where it can share GE’s 130+ year heritage with customers – energy, healthcare, transportation and industrial. Through its ‘Access GE’ programme, GE Capital gives customers access to GE’s experience and expertise to help solve their biggest business issues and challenges. For more info, visit www.gecapital.eu.
About Ares Management
Ares Management LLC is a global alternative asset manager and SEC registered adviser with approximately $68 billion of committed capital under management and approximately 700 employees as of September 30, 2013. Ares is headquartered in Los Angeles with professionals located across the United States, Europe and Asia and invests across the capital structure – from senior debt to common equity. Ares’ investment activities are managed by dedicated teams in its Capital Markets, Private Debt, Private Equity and Real Estate platforms. Ares Management was built upon the fundamental principle that each platform benefits from being part of the greater whole. This multi-asset class synergy provides its professionals with insights into industry trends, access to significant deal flow and the ability to assess relative value. For additional information, visit www.aresmgmt.com .
Headquartered in Saint Cloud (Paris area), France, Ethypharm is a niche pharmaceutical company specializing in modified release formulation and developing its own portfolio of prescription drugs based on proprietary technologies. Founded in 1977, the group employs 800 employees (including 130 dedicated to R&D) and has production facilities in France and China. In 2012, Ethypharm had sales of around €150MM mainly in Western Europe, Northern America and China.
Ethypharm drugs portfolio focuses on four main therapeutic areas: (i) Severe Chronic pain, (ii) Opioid addiction, (iii) Gastroesophageal Reflux disease and (iv) Hyperlipidemia.
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