In brief

• The staple financing for the sale of Essent Milieu, the Dutch waste management and disposal group, is being presented to banks with next round bids due from the four bidders still in the race – Coventa, Orange Consortium, PAI and Ryeff – due by May 8. Banks on board the staple are: ING and Credit Suisse, which have put it together, Bank of Ireland, Fortis, Friesland Bank, Helaba, Natixis, Rabobank and WestLB. The senior debt is split between a six-year €172.5m line at 425bp, a seven-year €100m line paying 475bp, and an eight-year €100m line that offers 525bp. The nine-year mezzanine tranche of €150m will have a fixed cash coupon and a PIK, which is up for discussion. There will also be a revolver of €20m. The leverage is 2.5 on the senior and 3.5 overall, though this rises to 4.5 once provision for making good landfill sites are included. The market appears to expect the assets to be acquired by a bidder with a clear track record in the waste management sector as the market for LBOs continues to be rocky.

Candover’s ongoing travails – there is talk of a sale of a number of companies in its portfolio including Key Optic, Equity Trust and Wood Mackenzie – are perhaps the strongest current example of how sour things can go when funding dries up, revenues fall and equity valuations tumble in a recession. Candover’s investment in Ferretti, the Italian yacht maker, was recently written off when the boat builder restructured its debt.

• Difficult though it is to make an LBO work well in the current climate, there are deals going ahead. The sale of the security business of paper maker ArjoWiggins to Centrale Partners, which has had exclusivity on the asset for a few weeks, is expected to go ahead once a club for about €150m to €175m has been put in place. The leverage on the deal will be 2.5x senior and about 3x in total. The banks in talks about the club are said to be the “usual suspects” for a French buyout.

• Also in France, LBO France has secured exclusivity on Idex, an environmental services group, which is being sold by Industri Kapital. Unsurprisingly, most deals are said to be small, with a couple of hundred million Euros now a formidable funding amount.