LONDON May 12 Spanish olive oil bottler Deoleo
has launched a 600 million euro ($825.39 million) loan
refinancing to get its debt in better shape before minority
shareholder CVC launches a full takeover offer, banking sources
said on Monday.
CVC already finalised a deal to buy a 29.99 percent stake in
Deoleo last month. CVC is aiming to end up with more than 50
percent of Deoleo through a bid for all outstanding shares and a
subsequent capital hike.
JP Morgan is leading the refinancing, joined by
joint bookrunners BNP Paribas, Credit Suisse,
Societe Generale and UniCredit IPO-UCB.F, the
banking sources said.
A bank meeting to showcase the deal is scheduled to take
place in London on Tuesday and New York on Wednesday, the
banking sources added.
The deal includes 460 million euros of first lien loans and
55 million euros of second lien loans. The first lien will be
denominated in euros and dollars. There is also an 85 million
euro revolving credit facility.
Total leverage is 5.3 times Deoleo's 92 million euro EBITDA
(earnings before interest, taxes, depreciation and amortisation)
or 4.7 times through the senior, the sources said.
Deoleo sells one fifth of the world's bottled olive oil and
owns three of the top four brands, Spain's Carbonell and Italy's
Bertolli and Carapelli.
($1 = 0.7269 Euros)
(Editing by Christopher Mangham)