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Rlpc frances materis launches 585 mln euro loan refinancing


´╗┐French private equity firm Wendel has injected fresh equity into building materials business Materis and is refinancing 585 million euros ($797.97 million) of debt in the company's two remaining divisions, banking sources said on Tuesday. Wendel bought Materis in 2006 backed by 1.9 billion euros of leveraged loans. Materis originally consisted of four divisions, but two were sold earlier this year. The sales of industrial mortars business Parex to CVC and calcium aluminates maker Kerneos to Astorg reduced Materis' debt and cut its exposure to the construction sector. Proceeds of the sales repaid senior loans, leaving Materis with more expensive junior mezzanine and second lien loans in two remaining divisions - paint manufacturer Paints and admixture producer Chryso.

Wendel's new equity injection reduced Materis' level of debt to earnings, or leverage, and the junior loans are now being refinanced with two cheaper senior secured loans for Paints and Chryso."The refinancing will create a more optimal debt structure for each company," a banking source said. The two refinancings will be ringfenced at Paints and Chryso's operating company level, which is closer to the company's assets. Materis' debt previously sat at the holding company level, the bankers said.

BNP and HSBC are leading the refinancings. Two bank meetings will be held in London on Thursday to show the deal to institutional investors, the banking sources said. The refinancing for Paints includes a 300 million euro, seven-year term loan B and an 80 million euro, six-year revolving credit.

Chryso's refinancing includes a 165 million euro, seven-year term loan B and a 40 million euro, six-year revolving credit facility. Pricing will be revealed at the bank meetings. Both of the refinancings are covenant-loose with leveraged and interest cover covenants only, instead of the customary four covenants which also include fixed charge and free cashflow covenants. Covenant-loose loans offer more protection than covenant-lite loans, which have none of the four maintenance covenants. ($1 = 0.7331 Euros)

Rlpc uk prezzo buy backed with 155 mln stg loan


´╗┐Nov 11 US private equity firm TPG's takeover of British restaurant chain Prezzo will be backed with 155 million pounds (246.00 million US dollar) of leveraged loans, banking sources said on Tuesday. Barclays and Jefferies arranged the all-senior loan financing which will be shown to investors at a bank meeting this week and subsequently sold in a syndication process, the banking sources said.

TPG agreed the buyout after beating competition from rival buyout firm Advent. TPG's offer of 126.5 pence per share values Prezzo at approximately 304 million pounds, nearly 10 times its full-year earnings from 2013

The loan will be split between a 130 million pound term loan and a 25 million pound revolving credit, the banking sources said. Pricing is yet to be determined but one of the sources added the term loan could be guided to pay around 475 basis points over Libor.

The financing totals around 3.8 times Prezzo's approximate Earnings Before Interest, Taxes, Depreciation and Amortisation (EBITDA) of 34 million pounds, the bankers added. Prezzo is controlled by the Kaye family with a 58 percent stake. The Kayes also founded the Ask and Zizzi chains, sold to Gondola in 2004. Cinven-backed Gondola recently sold its Pizza Express brand to China's Hony Capital for 900 million pounds. (1 US dollar = 0.6301 British pound)