Deutsche Bank and ABN AMRO launched syndication of a e175 million add-on term loan for Buhrmann last Wednesday, according to a banker. The credit is being offered in U.S. dollars and is priced at LIBOR plus 1 3/4%. The credit is being added onto an existing term loan that is split between two tranches, one a $503 million term loan and the other a e50 million term loan, launched in January 2004. The existing facility was priced around LIBOR plus 2 1/4%, according to company releases.
The banks intend to offer a 12 1/2 basis point pricing increase to the existing term loan because the add-on requires an amendment, as well as changes to a few covenants, a banker said. He did not know what the covenant changes would be. The deal is being used to finance the acquisition of Andvord Tybring-Gjedde ASA, for approximately e271 million. Buhrmann's debt leverage ratio was 3 times as of June 30, according to a Securities and Exchange Commission filing.
Buhrmann also tapped Deutsche Bank and ABM AMRO for financing back in 2003. That deal consisted of a $360 million "B" loan, a e320 multi-currency revolver and a e200 million "A" piece. At launch, price talk on the euro tranches was LIBOR plus 2 1/2% and pricing for the dollar piece was LIBOR plus 3% (LMW, 11/23/2003). The deal was refinanced in 2004, replacing the term loan "B" with a term loan "C" and pricing dropped 25 basis points, according to a release.
Netherlands-based Buhrmann is a supplier of office products to businesses and institutions. Andvord Tybring-Gjedde is a Nordic region-based office products group. Spokesmen for the companies could not be reached.