LONDON Nov 30 French aluminates company Kerneos
is set to raise a 505m loan to refinance existing debt and
repay a vendor loan that was used to finance the company's 2014
buyout by private equity firm Astorg, banking sources said on
BNP Paribas and Goldman Sachs are leading the loan financing
and a bank meeting is set to take place on Wednesday to show the
deal to investors, the sources said.
The loan includes a 445m seven-year covenant-lite term loan
B, expected to pay 400bp over Euribor with a 0% Euribor floor at
99.5 OID, the sources said.
There is also a 60m six-year revolving credit facility,
guided to pay 3.75bp over Euribor.
The loan will refinance Kerneos' 375m senior secured notes,
a super senior RCF, and remaining vendor loan that totals around
50m, as well as fees and expenses, the sources said.
Lenders have been asked to commit to the deal, which has
estimated net leverage of 4.25 times, by December 14.
Earlier this year, Astorg put Kernoes up for sale, hiring
investment bank Lazard on the process. A sale could have valued
the firm at around 1bn.
Paris-based Kerneos makes calcium aluminate cements, used as
tile adhesives and furnace insulation among other functions.
(Editing by Christopher Mangham)