70 International Financing Review February 29 2020The acquisition values EI Group’s shares
at around £1.272bn or an enterprise value of
£2.97bn when debt is included.CALDIC SEEKS AMENDMENTSDutch chemical distributor CALDIC is seeking
to amend and extend existing loans after
THEûlRMûDIVESTEDûITSûTANKûSTORAGEûBUSINESS
Caldic is aiming to make some
documentation amendments to align the
facility agreement reporting with the new
IFRS reporting that is being adopted for
lNANCIALûYEARû
It also plans to extend the maturity of the
term loan B and the second-lien loan by two
years and to seek more operational
mEXIBILITYûALLOWEDûUNDERûTHEûEXISTINGûLOANû
documentation.
Goldman Sachs is leading the transaction.
In December 2019, Caldic agreed to sell
its Dutch tank storage and production
facilities in Europort to First State
Investments in an undisclosed amount.
The divestment decision is to focus more
on solution-driven distribution activities
within the food, health and personal care
and industrial markets, the company said.
As part of the divestment process, the
lRMûISûLOOKINGûTOûPARTLYûREPAYûEXISTINGûDEBTû
and pay a one-time dividend to shareholders
using proceeds from the sale.
Caldic last tapped the loan market in June
2017 for a €245m seven-year covenant-lite
term loan at 325bp over Euribor to back its
acquisition by Goldman Sachs Merchant
Banking Division.4HEûlRST
LIENûINCLUDEDûAûõM
EQUIVALENTû
Canadian dollar-denominated pre-placed
tranche.
In addition, there was an €84m eight-year
pre-placed second-lien loan and a €60m
revolving credit facility to support the
buyout.ASIA-PACIFIC
HEALTHE CARE FLEXES PRICING(EALTHEû#AREû!USTRALIAûISûmEXINGûTHEûPRICINGû
on portions of its A$735m (US$482m) multi-
TRANCHEûlNANCINGûFORûITSûSUBSIDIARIES
!û!MûlVE
YEARûSENIORûTRANCHEûFORû
HEALTHE CARE SURGICALûANDûAû!MûlVE
YEARû
lRST
LIENûTERMûLOANûFORûHEALTHE CARE SPECIALTY
is now offering interest margins of 475bp
over BBSY each, up from 425bp when the
deal was launched last November.
A A$80m mezzanine piece for Healthe
Care Surgical is guided at 10.5%, and a
A$105m 5.5-year second-lien term loan for
Healthe Care Specialty at 800bp over BBSY.
4HEûlNANCINGûFORûTHEûLATTERûALSOûINCLUDESûAû
A$10m capex tranche and a A$10m
revolving credit facility.
Goldman Sachs is underwriting the facilities
for the companies, owned by China’s Luye
Medical Group.
Healthe Care Surgical operates hospitals
and day surgeries, while Healthe Care
Specialty runs mental health and
rehabilitation hospitals as well as oncology
and cardiology centres.Luye Medical Group, part of China’s Luye
Life Sciences Group, has repaid outstanding
loans of about A$295m that funded its
acquisition of private hospital operator
Healthe Care Australia in 2016.
ANZ, DBS Bank, Industrial and
Commercial Bank of China, National
Australia Bank and Westpac were the
lenders.TRADE ME WRAPS REPRICING.EWû:EALANDûONLINEûCLASSIlEDûOPERATORûTRADE
MEûHASûlNALISEDûTHEûTERMSûONûITSû53Mû
term loan B repricing.
The TLB priced at 400bp over Libor with a
ûmOORûFROMûGUIDANCEûOFûBP
BPûOVERû
Libor.
The loan was issued with no OID and 101
soft-call protection will be reset for six
months.
Corporate ratings are B1/B.
Credit Suisse ARRANGEDûTHEûlRST
LIENûLOAN û
which will mature in May 2026.
Trade Me raised a US$605m seven-year
TLB in April at 425bp over Libor with a 0%
mOOR
Proceeds supported the company’s buyout
BYûPRIVATEûEQUITYûlRMû!PAXû0ARTNERS
The buyout was also supported with a
NZ$276m (US$178.7m) second-lien loan that
was privately placed.BARING TAPS FOR EDUCATION FIRMBARING PRIVATE EQUITY ASIA has raised a US$70m
lVE
YEARûCLUBûLOANûTOûBACKûITSûPURCHASEûOFûAûLenders line up €3.25bn for Coty unit sale
EUROPE Sale is attracting private equity and trade buyersCredit Suisse and UniCredit have lined up around
€3.25bn of leveraged loans to back a potential
sale of the hair and nail care unit of US-based
cosmetics maker COTY.
Coty is exploring the sale of the division that
houses brands such as Wella, Clairol and OPI as
part of its plan to whittle down its portfolio and
cut debt.
Bids are due on March 2 in the first round of
an auction process and the sale is attracting
private equity and trade buyers, including
consumer goods giants Unilever and Henkel,
and buyout funds such as Advent, Bain,
Blackstone, CD&R, Cinven, CVC, CPPIB, GIC,
KKR, Partners and TDR.
“We are still trying to work out who is not
around it. It is a global trade so global, US and
European sponsors are trying to decide whether
to put indicative bids in. There are around 29
names on the list,” a senior banker said.The €3.25bn leveraged loans from Credit
Suisse and UniCredit is a staple financing that
will be available to any potential bidder to give
them certainty of funds.
The staple financing totals around 6.5 times
the unit’s approximate €500m Ebitda and
consists of first and second-lien loans.
“It is super punchy leverage because it is
not one business but a collection of different
businesses that are not all aligned. Whoever buys
it is going to have to take the business apart and
put it back together again so bankers need to
work out what it might look like and then what
leverage it can support,” the senior banker said.
“Retail is a tricky sector but it is an attractive
proposition with some high-profile brands and
it is gaining a lot of interest,” a syndicate head
said. “It is also an event-driven financing, which
let’s face it, everyone has been screaming out
for.”FRUSTRATING TIME
Bankers and investors in Europe’s leveraged
loan market have been desperate to invest
in new paper in a bid to put a meaningful
amount of money to work following a lack of
M&A and several opportunistic financings, as
borrowers take advantage of the supply/demand
imbalance to improve the borrowing terms on
their portfolios.
Coty said it will use the proceeds from any
transaction to pay down debt and return excess
cash to shareholders.
The company, which is majority owned by
German conglomerate JAB Holdings, hired
Credit Suisse to run a sale process for the unit,
which generated about US$2.7bn in net revenue
in 2019.
Last year, JAB raised its stake in Coty to 60%,
giving it a firmer grip on the company.
Claire Ruckin9 IFR Loans 2322 p 55 - 72 .indd 70 28 / 02 / 2020 18 : 11 : 32