Register Log-in Investor Type

Candover refinances debt

At 30 June 2015, Candover had $83.9m (£53.1m) of US private placement notes outstanding, with a maturity date of 31 December 2015. The Company’s net debt position as at 30 June 2015 was £32.3m (as they had $20.8m of cash and cash equivalents. The Company has agreed a new term loan facility with 17Capital LLP for up to €52m (£37.1m). The Facility will enable the Company to repay the existing US private placement notes at par and meet ongoing working capital requirements.

The key terms of the Facility are set out below.

  • A term loan of up to €52m attracting payment-in-kind interest at 13% pa, which will roll-up and be paid when the loan itself is repaid.
  • The loan is subject to a minimum repayment amount calculated as if the loan had been outstanding for 2.75 years; however, this is reduced to 1.15 years for any amounts repaid within the first 12 months, up to a maximum of €19.4m
  • The terms of the Facility allow the Company to return £21.8m (equivalent to 100 pence per share) to shareholders, following the realisation of assets, ahead of any repayment of debt, in contrast to the Company’s previous debt arrangements. This initial return is subject to a pre-distribution test that the portfolio value is at least twice the level of debt.
  • Debt repayments will commence following this initial return of capital to shareholders, funded from the net proceeds of subsequent realisations.
  • The Facility has a five year maturity, which can be further extended at the Company’s option at no cost, thereby effectively eliminating any maturity risk and providing flexibility with respect to the timing of disposals.
  • The Facility is denominated in Euros to match the assets in the portfolio, the majority of which are valued in Euros.

CDI : Candover refinances debt

Leave a Reply

Your email address will not be published. Required fields are marked *

Please review our cookie, privacy & data protection and terms and conditions policies and, if you accept, please select your place of residence and whether you are a private or professional investor.

You live in…

You are a…