BNP Paribas Lands Lead On MD Beauty Credit

Ross Jones

BNP Paribas' relationship with Berkshire Partners and its presence in the middle-market ensured the lead spot on a recap for MD Beauty, according to Ross Jones, a partner with Berkshire. "Berkshire Partners has a long relationship with BNP Paribas and they are very strong and active in the middle-market right now," Jones said of the choice of lead bank. BNP Paribas last week launched syndication of an $80 million facility backing Berkshire, JH Partners' and management's recapitalization of the branded cosmetics and skin-care products company.

Berkshire is acquiring its interest with new capital and JH Partners and management already have an existing interest that will roll over, Jones said. The facility comprises a $15 million revolver and a $45 million "A" loan that went out at LIBOR plus 4 1/4%. A $20 million second-lien term loan is being talked at LIBOR plus 7 1/2%. The revolver will be undrawn at closing. Bank of Ireland has signed on as syndication agent prior to the bank meeting that was held last Tuesday, a source said.

In addition to the credit facility, Berkshire has arranged for $35 million of mezzanine debt from York Street Capital Partners and Gleacher Mezzanine. CIBC World Markets advised MD Beauty. JH Partners officals did not return calls and MD Beauty officials referred calls to Berkshire officials. The transaction is expected to close in June. BNP Paribas bankers declined comment.

• 21 May 2004