RLPC-CVC seeks dividend payment in Ahlsell debt reshuffle

LONDON Tue May 13, 2014 12:07pm EDT

LONDON May 13 (Reuters) - Private equity firm CVC is looking to raise around 270 million euros ($370.08 million) of new loans for its Swedish tools and equipment maker Ahlsell to pay a dividend to shareholders and amend and extend existing debt, banking sources said on Tuesday.

The financing will see CVC raise a new 2.2 billion Norwegian crown ($371.28 million) term loan A (TLA) with the proceeds used to make a dividend payment, the banking sources said.

There will also be some changes to documentation and covenants to give Ahlsell greater flexibility.

CVC is also seeking to extend existing term loans by two years and reduce interest margins by 50 basis points (bps). A term loan B (TLB) will now mature in 2021 and pay 425 bps over Euribor while a TLA, revolver (RCF) and capital expenditure facility will mature in 2020 and pay 400 bps over Euribor.

CVC declined to comment.

Commitments are due May 21 and lenders will receive a 25 bps commitment fee.

CVC bought Ahlsell from from Cinven and Goldman Sachs Capital Partners in 2012 for 1.8 billion euros backed by 1.1 billion euros of leveraged loans.

It repriced those loans a year later in March 2013, shaving 75 bps off its 510 million euro TLB to 475 bps and 50 bps off its TLA and RCF to 450 bps. Lenders also agreed to give more covenant headroom to the company, according to Thomson Reuters LPC data.

After acquiring Ahlsell, CVC put on hold its plans to refinance Ahlsell's loans with high yield bonds in November 2012, in a bid to save costs.

Ahlsell is a distributor of electrical, refrigeration and heating and plumbing products to trade and DIY enthusiasts in the Nordic region, with outlets in Sweden, Norway, Finland, Denmark, Estonia and Russia. ($1 = 0.7296 Euros) ($1 = 5.9254 Norwegian Krones) (Editing by Christopher Mangham)