Relevant Documents:
Press Release
Financial Report 2019
Idinvest Partners has provided a unitranche facility to refinance German technology company Kinetics Group’s existing debt and support its growth, according to a press release.
Continue reading for the EMEA Middle Market by Reorg team's update on Kinetics Group's refinancing, and request a trial for coverage of stressed, distressed and high-yield credits in the region.
The transaction is based on an EBITDA of €20 million and revenue of more than €300 million, sources told Reorg. Leverage levels for the transaction are conservative, the sources added. Conservative lenders tend to provide leverage levels of 3.5x to maximum 4.5x leverage in the current market, other sources said.
Idinvest will complement existing local financing providers, Kinetics’ sponsor, Quadriga, said in the press release. The unitranche comprises several loans from local banks in the countries in which Kinetics operates, sources added.
Backed by sponsor Quadriga Capital Funds, Kinetics provides integrated services and critical process equipment for high purity processes in a variety of technology industries. The company is based in Eschau-Hobbach, Germany, and employs about 1,700 people in 22 locations in Europe, North America, Middle East and Asia.
According to the 2019 financial report for the German unit of Kinetics, Kinetics Holding GmbH, the unit owed its stakeholders about €68.6 million. The debt would be subordinated in case of insolvency, the report said. As of Dec. 31, 2019, the company listed €46.5 million in debt, which means it is a loss that is not covered by own capital, it added.
--Kerstin Kubanek