Webhelp, a KKR portfolio business, was one of the first repricing deals in the European leveraged loan market in January. But it will not be the last one this year.
“This is the situation, issuers keep pocketing savings,” said a leveraged finance banker working on some of the repricing deals in the market this week. “We’ve seen an unusual number of new investors in loans, and most corporates have a very good chance of cutting costs on their existing facilities.”
Webhelp has a €550m term loan ‘B’ due 2023. In January, KKR Capital Markets and Nomura arranged a repricing from 550bp over Euribor to 450bp-475bp, offered at 99.75 with a 0% floor.
On Friday, the same bookrunners have scheduled an investor call for another fresh cut of the spread of some 25bp and above, according to a source with knowledge of the deal.
The borrower also has an £85m term loan ‘B’, which was added in January, together with the repricing.
The original facilities supported Webhelp’s acquisition by KKR from Charterhouse Capital Partners.
Charterhouse sold a 60% stake in Webhelp for €600m, valuing the company at €1bn, according to Dealogic, in January 2016.
Charterhouse bought the stake from Astorg Partners for €350m in 2011.
Since then, Webhelp’s revenues have grown from €200m to a forecast €725m for 2015, according to the company. Its staff has swelled from 7,000 to more than 30,000.
Webhelp was last in the leveraged loan market in July 2014, for a €155m seven year dividend recapitalisation term loan. In June 2013, it had refinanced with €275m of new loan facilities, with the €230m seven year term loan priced at 475bp over Euribor, the other credit facilities at 425bp.
This week, two other loan borrowers, chemicals group Ineos and UK vehicle part repair firm Belron (see separate stories) have cut costs on their facilities repricing them either at the tight end of guidance or even tighter.
On Thursday, Hotelbeds, the Spanish travel distribution operator, set a lender call for a repricing deal, too.
In May, it allocated a €325m term loan backing its acquisition of the travel distribution group of Kuoni.
The loan was originally scheduled to be an add-on to its existing €690m term loan signed a year ago, which was tapped for €200m earlier this year. It eventually became a separate facility, priced at 400bp, offered at par with a 0% floor. HSBC and Morgan Stanley are bookrunners of the repricing.