UPDATE 2-Wavin opts for rights issue, new debt facilities
* Proposes 225 mln euro capital hike
* Agreement to amend debt facilities
* Postpones talks on CVC private placement
* Shares down 1.4 pct, pare losses
(Adds spokesman, analyst comments, updates shares)
AMSTERDAM, June 8 (Reuters) - Dutch plastic pipe maker Wavin NV (WAVIN.AS) plans a 225 million euro ($314 million) cash call and has renegotiated its debt facilities, it said on Monday, as it battles to repair its finances.
The company, whose earnings have been hit by a slump in European building markets, said the financing package would include an amendment and restatement of an existing debt facility and a "forward start" agreement of 475 million.
The latter would extend the maturity of its debt facility to April 2013.
Wavin added it had postponed discussions with British private equity firm CVC Capital Partners on a potential private placement of convertible securities.
Wavin, which last month reported a 21.4 million euro net loss for the first quarter, previously said the potential private placement of convertible securities would take place at a significant discount and could be combined with a public rights issue. [ID:nL6977182]
Shares in Wavin dropped as much as 7.6 percent but pared losses to be down 1.4 percent at 2.35 euros by 1037 GMT, valuing the company at about 190 million euros, compared with a 1.3 percent fall in the Amsterdam midcap index .AMX.
Wavin shares have slumped to a fraction of a peak of 19.18 euros set in August 2007.
OFF THE TABLE
"For shareholders it is better that the private placement is off the table because now shareholders have an option to participate in it or not and will not be faced with a massive dilution to CVC," said analyst Maarten Bakker at Fortis Bank Nederland.
A Wavin spokesman said under the terms of the financing agreement, a five-year 750 million euro credit facility due to end in October 2011 had been reduced to 500 million with the same expiry date. The 475 million facility would start in October 2011 and end in April 2013, he added.
Wavin, which had a net debt of 582 million euros on March 31, said in February it is allowed under its debt covenant to have a leverage ratio, which measures net debt against operating profit (EBITDA), of 4.0.
Spokesman Herbert van Zijl declined to comment on what the new covenants would be but reiterated the company was likely to have breached the covenants at the next testing date on June 30 had it not renegotiated its debt facilities.
Wavin, which listed was at 11 euros per share in 2006 by private equity firms AlpInvest Partners and CVC Capital Partners, competes with Finland's Uponor (UNR1V.HE) and Swiss Geberit (GEBN.VX).
The capital raising is conditional upon agreement with banks over the debt facilities and shareholder approval at a general meeting, which will be held in coming weeks. (Editing by Simon Jessop and David Holmes) ($1=.7163 Euro)
