Hagemeyer's newly restructured bank debt has been trading actively in the 90s range over the last couple of weeks since the company completed its ¤1.5 billion restructuring plan. One buysider quoted the working capital facility, which is held at the operating level, around the 94-96 range and the term loan, which is held at the holding company level, in the 921/2 context. Prior to the restructuring, the senior bank debt traded into the 75 range.
Hagemeyer recently restructured using a ¤460 million rights issue and a new ¤150 million subordinated convertible bond issue to partially repay its debt. The remaining debt was split into a new loan comprising a ¤150 million term loan and a ¤755 million working capital facility. ABN Amro is the mandated lead arranger for the loan. The buysider said if Hagemeyer's earnings recover the company could potentially prepay or refinance the bank debt. Hagemeyer officials could not be reached by press time.