IFR 03.08.2019

ION Group turned to the private debt
market to fund the Acuris buy after failing
twice to raise leveraged loans in the broadly-
syndicated loan market earlier this year.
ION Group agreed to buy a majority stake
in Acuris from BC Partners in March for
£1.35bn, including debt.
Investors opposed various terms on ION
Group’s previous two loans due to high
leverage, which has climbed in the last 12
months after several acquisitions. Adjusted
leverage was approximately 9.5 times for
the 12 months ended in September 19,
according to Moody’s.
4HISûCORRECTSûAûREPORTûINû)&2ûLASTûWEEKûTHATû
a third loan was on hold after Ion Group
tried to raise up to US$1.1bn in debt
lNANCINGûVIAûHOUSEûBANKû5"3ûANDû-ORGANû
Stanley, and that UBS was assessing a
potential window to syndicate the debt
again.

ASIA-PACIFIC

NEW FRONTIER TAPS FOR HOSPITAL LBO

A US$300m committed senior term loan is
backing New York-listed investment
company NEW FRONTIER CORP’s US$1.44bn
buyout of Chinese hospital operator United
&AMILYû(EALTHCARE
To fund the purchase and provide
working capital to the new company, New
&RONTIERûHASûOBTAINEDûDEBTûCOMMITMENTSû
from several lenders for up to US$300m.
Additionally, US$711m in equity
commitments from a group of investors
INCLUDINGû6IVOû#APITALûANDû.ANû&UNGû'ROUP û
ASûWELLûASûPROCEEDSûFROMû.EWû&RONTIERSû
INITIALûPUBLICûOFFERINGûWILLûALSOûlNANCEûTHEû
purchase.
.EWû&RONTIERû#ORP ûANûINVESTMENTûVEHICLEû
of China-focused investment group New
&RONTIERû0UBLICû(OLDING ûENTEREDûINTOûAû
DElNITIVEûAGREEMENTûONû*ULYûûTOûACQUIREû
5NITEDû&AMILYû(EALTHCAREûFROMûPRIVATEû
EQUITYûlRMû40'û#APITALûANDû3HANGHAIû&OSUNû
Pharmaceutical Group.
Upon closing of the transaction, United
&AMILYû(EALTHCAREûWILLûOPERATEûUNDERûTHEû
NAMEûOFû.EWû&RONTIERû(EALTHû#ORP ûANDûISû
expected to be listed on the New York Stock
Exchange.

!SûPARTûOFûTHEûTRANSACTIONû5NITEDû&AMILYû

Healthcare is expected to be given the

EXCLUSIVEûRIGHTûTOûMANAGEû.EWû&RONTIERû

'ROUPSûûSQUAREûMETREûmAGSHIPû

hospital in Shenzhen.

.EWû&RONTIERû'ROUPûINVESTSûINûANDûOPERATESû

businesses in the Chinese new economy

sectors, spanning healthcare to the internet,

ARTIlCIALûINTELLIGENCEûBIGûDATAûEDUCATIONûANDû

lNANCIALûSERVICESûACCORDINGûTOûITSûWEBSITE

A&E FOR GREENSBOROUGH PLAZA LOAN

0RIVATEûEQUITYûlRMû"LACKSTONEû'ROUPûISû

seeking to amend and extend a A$260m

(US$179m) three-year loan signed in 2017

for Greensborough Plaza in Melbourne.

The loan will be extended for a further

three years, with price talk around 200bp

over BBSY. No amendment fee is being

offered.

The 2017 loan comprises a A$260m term

loan, a A$27.5m revolving credit facility and

a A$5m bank guarantee facility. Citigroup

was the sole mandated lead arranger and

BOOKRUNNERûOFûTHEûlNANCINGûWHICHû

attracted seven others in general

syndication.

GREENSBOROUGH FINANCE was the borrower of

the previous deal, which paid a margin of

185bp over BBSY based on a loan-to-value ratio

OFûûANDûWASûUSEDûTOûRElNANCEûAûFOUR

YEARû

property acquisition loan signed in 2013.

In 2013, Blackstone purchased

Greensborough Plaza for A$360m from Lend

Lease Group.

RESTRUCTURING

EUROPE/MIDDLE EAST/

AFRICA

SENVION GETS MORE SUPPORT

Insolvent German wind turbine

manufacturer SENVION has reached an

agreement with its lenders giving the

BUSINESSûlNANCIALûSUPPORTûUNTILûATûLEASTûTHEû

end of August, while it continues talks with

potential buyers.

)Nû!PRILû3ENVIONûAGREEDûAûõMû

month super senior debtor-in-possession

loan with its creditors to enable it to

CONTINUEûOPERATIONSûAFTERûlLINGûFORûSELF

administration.

Senvion says it has now got support from

its lenders which will allow for the

continuation of its business until the end of

August and potentially for a period

thereafter.

According to one source close to the

situation, this means Senvion does not have

to make any interest payments on the

õMûLOANûFORûATûLEASTûTHEûNEXTûFOURûWEEKS

“Senvion can now use operational

CASHmOWSûFORûITSûOWNûNEEDSûFORûTHEûNEXTû

month rather than paying its lenders,” he said.

In the meantime, the company is

continuing its M&A process and discussions

with potential bidders are now at an

advanced stage.

3ENVIONûlLEDûFORûSELF

ADMINISTRATIONûAFTERû

the Hamburg-based company, which has

more than a billion euros of debt, struggled

following delays and penalties related to big

projects.

It is now in talks with other wind turbine

BUSINESSESûANDûPRIVATEûEQUITYûlRMSû

interested in buying it.

“We have been exploring our options to

secure the best possible outcome for the

company. However, as negotiations have not

yet been concluded, we will further

accelerate the M&A process and in parallel

initiate a review of all business areas to

SECUREû3ENVIONSûPROlTABLEûCOREûBUSINESSvû

said Yves Rannou, CEO of Senvion. “The goal

ISûTOûlNALISEûOURûADVANCEDûINVESTORû

discussions in the short term.”

3ENVIONSûSENIORûDEBTûINCLUDESûAûõMû

revolving credit facility maturing in April

ûASûWELLûASûCONTINUEDûACCESSûTOûAûõMû

LETTERûOFûGUARANTEEûFACILITYû)TûALSOûHASûõMû

of senior secured notes due 2022.

Restructuring advisers PJT Partners is

advising the company and Moelis has been

appointed to advise the senior lenders.

In January 2015 Indian wind turbine

maker Suzlon Energy sold Senvion to

#ENTERBRIDGEû0ARTNERSûFORûõBNûINûANûALL

cash deal.

)Nû-ARCHûûPRIVATEûEQUITYûlRMû

Centerbridge sold a stake of around 26.4% in

Senvion to private investors in an IPO.

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