Jost in time

BNP Paribas, ING and SG have been mandated to arrange a €425m debt package backing a secondary buyout of automotive parts maker Jost. Debt is made up of €75m in mezzanine with the balance of facilities as senior bank debt, split between €280m in drawn senior and €70m undrawn. Leverage is 3.5x through senior and 4.5x total. The deal is expected to launch before the summer.

Silverfleet Capital, formerly known as PPM Capital, is selling the Germany-based vehicle components manufacturer to sponsor Cinven, and says it is making a 47% return on its original investment.

When the then PPM Capital was still part of Prudential, it acquired Jost Group from private equity company Alpha Group in June 2005 for €320m. Jost employs around 2,000 people and had turnover of €445m in 2007.

Bank of Ireland and Dresdner Kleinwort are set to wrap up syndication of senior debt facilities for 3i‘s buyout of DruckChemie from a consortium led by SG Capital Europe. Leads said the deal raised a comfortable oversubscription, having been shown to a mix of new and existing lenders.

Senior facilities were made up of a €25m seven-year amortising term loan A paying 237.5bp over Euribor, a €20m eight-year bullet term loan B paying 287.5bp, a €20m nine-year bullet term loan C paying 337.5bp, a €10m seven-year revolver paying 237.5bp and a €20m seven-year capex facility paying 237.5bp. A mezzanine tranche was provided by European Capital.

Leverage based on 2007 EBITDA opened at 4.1x senior. DruckChemie provides inventory management and waste collection services to the graphic arts industry and produces specialist chemical print products.

RBS, Lloyds TSB, Royal Bank of Canada, HSBC and DnB NOR Bank are understood to be backing the latest increased cash offer for Expro by Umbrellastream, a consortium led by Candover, with Goldman Sachs and Alpinvest. The same banks backed a £1.605bn bid in April, raised to £1.73bn earlier this month and now to £1.806bn.

Expro’s shareholders have already approved a scheme of arrangement by which Umbrellastream could take over the company. However, Expro’s board has not ruled out recommending a competing bid from US oil rival Halliburton, if it were to raise its 1525p per share proposed cash offer before June 20.

One hung deal which is seeing a successful sell-down is the debt package underwritten for Belgian cable business Telenet through bookrunners RBS (ABN AMRO), BNP Paribas and JPMorgan and mandated lead arrangers Bank of Scotland, ING, SG, Dexia, KBI, WestLB, Fortis and RBS.

Leads said the price has been rising as the sell-down has gone on over the past month, to around 96.50 for a blended piece. As the price has risen, leads have also changed the mix of debt available. The deal was originally launched in October after a senior syndication phase. The all-senior facilities recapitalised the business, which is 49.7%-owned by Liberty Global.

The original deal was made up of a €175m seven-year revolver paying a margin of 212.5bp; a €530m five-year term loan A paying 225bp; a €307.5m six-and-a-half-year amortising term loan B1 paying 250bp; a €336m six-and-a-half-year term loan B2 paying 250bp; and a €1.0625bn eight-year term loan C. Leverage was 4.2x through total debt, but has been reduced to 3.9x.

Elsewhere, leads are replicating some of the strategies employed in the sell-down of Alliance Boots in their effort to syndicate debt backing last year’s loan supporting Mediaset‘s buyout of a 75% stake in Endemol. Physical bookrunners are Credit Suisse and Goldman Sachs, bookrunners are RBS (ABN AMRO) and Barclays and mandated lead arrangers are Lehman Brothers and Merrill Lynch. As with the Alliance Boots deal, not all underwriters are selling their positions.

Interest is understood to be focused on senior paper, with price talk for senior heard at 72.50. The sell-down process is focused on one-on-one meetings with institutional investors. A leveraged bid is understood to account for up to 70% of the paper available, with arrangers targeting a cash bid for the balance.