Electricité de France (EDF) has asked for bids from its closest relationship banks for a new loan facility. Proceeds will be used to refinance existing bank debt. EdF most recently tapped the loan market with a Eu2bn 364 day revolver in May 2001.
The company also has an outstanding $520m eight year facility that matures next year. JP Morgan and UBS arranged that facility.
Arrangers BNP Paribas, HSBC and Royal Bank of Scotland are finalising allocations of the six banks that joined Gecina's Eu2.7bn acquisition facility before signing them into the deal next week.
Initial commitments of Eu270m are to be scaled back to Eu230m.
The deal will not be launched into a retail phase.
See EuroWeek 773 for details of the deal.
Sentiment toward the debt facilities backing the Eu380m PAI-led buy-out of Lustucru's fresh pasta, sauces and rice businesses and the acquisition the 50% stake in couscous maker Ferico which PAI does not already own, has been positive. The new business is called Panzini.
Despite the glut of leveraged debt that has moved through the market since the end of August, banks and investors continue to respond warmly to medium and smaller sized leveraged deals for well known names.
Syndication this week received a boost when Eu85m was put down by an institutional investor.
The debt facilities are split into Eu295m of senior debt and Eu85m of mezzanine.
Senior debt is divided into a Eu125m tranche 'A', a Eu60m tranche 'B', a Eu60m tranche 'C' and a Eu50m revolver. All of the tranches feature on market margins and tenors.
Banks have been invited to commit Eu15m for 95bp.
Deutsche Bank and Crédit Lyonnais are arranging the facilities.
Crédit Lyonnais and ING (co-ordinator) will launch the debt facilities backing the buy-out of women's clothing retailer Un Jour Ailleurs by Astorg into syndication today (Friday).
Banks will be invited to commit tickets of Eu15m for 80bp or Eu7.5m for 60bp.
The debt is divided into a Eu46m six year amortising term loan 'A', an Eu18m bullet term loan 'B', a Eu10m revolver and a Eu30m capex facility. There is also a Eu20m mezzanine portion.
Opening leverage is 2.9 times senior debt to Ebitda and 3.75 times total debt to Ebitda.
A bank meeting is scheduled for October 18 in Paris.
BNP Paribas will launch the Eu145m of senior debt facilities backing the buy-out of specialist French perfumes and beauty retail chain Nocibé by Bridgepoint Capital and TCR into general syndication in early November.
ICG is arranging a Eu35m mezzanine facility to support senior debt. Bridgepoint is providing 60% of the equity with TCR bringing in 6%, the founder of Nocibé is providing less than 20% with the vendor keeping a stake of around 10%.
Senior debt will be held at the operating level of the company and will, to a large degree, refinance existing debt.
Citigroup/SSSB and Natexis Banques Populaires have been mandated to arrange the refinancing of a $500m multi-currency revolving credit facility for animal pharmaceuticals company Merial.
Arrangers have approached a select group of banks in the early stage of syndication.
Proceeds from this facility will refinance a $500m five year revolver signed in December 1997. Citigroup/SSSB and Crédit Lyonnais arranged that loan.
A large group of 18 banks committed to the deal, although a smaller syndicate is expected to support the new facility - the universe of Europe's lending banks has shrunk since the late 1990s.
Merial is jointly owned by US-based pharmaceuticals firm Merck and Franco-German firm Aventis.
Private equity sponsors competing in the auction for TotalFinaElf's paints division Sigma Kalon expect the vendor to announce its verdict next week.
Banks close to the deal are CIBC, HBOS, JP Morgan, Goldman Sachs, ING and Natexis Banques Populaires, say bankers.
EuroWeek hears that bids submitted feature leverage ratios of around 5.4 times total debt to Ebitda.
Waiver agreements from 66.6% of the banking syndicate in Vivendi Universal's (VU) Eu3bn loan signed in March and its Eu850m facility signed in 1999 which were needed by today (Friday) have been received.
There are still replies outstanding. However, with over two thirds of the syndicate in favour of the waivers, the remaining decisions carry little weight.
Once the documentation has been processed and signed, arrangers of VU's new Eu3bn credit line, to be the most senior secured of all of its debt, will syndicate the Eu3bn facility to a select group of banks.
Arrangers are BNP Paribas, Citigroup/SSSB and SG, and syndicate members include ABN Amro, CDC Ixis, Crédit Agricole Indosuez, Crédit Lyonnais, Credit Suisse First Boston, Natexis Banques Populaires, Royal Bank of Scotland and SMBC.
