LONDON May 13 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
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
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)