KME AG
KME AG Kicks Off Marketing of €300M 5Y Senior Secured Note; Proceeds to Repay Borrowing Base Facility, Intek Group Loans
Mon 01/29/2018 03:05 AM
Relevant Document:
Preliminary Offering Memorandum
KME AG, a pan European industrial group, started marketing a new €300 million senior secured bond this morning. The note will have a five-year maturity, carry a fixed coupon and have a call protection NC2, 50%, 25%, par.
The company, one of the global leaders in copper and copper alloy products, will start the road show today and Tuesday in London, move to Milan and Paris on Wednesday, Jan. 31, and finish with Amsterdam and Frankfurt on Feb. 1.
The new note is expected to be rated B3/B and will have New York law documentation. Goldman Sachs, BNP Paribas and Deutsche Bank are joint global coordinators, while Banca Akros, Gruppo Banco BPM are joint bookrunners. Banca IMI and Raffaisen are co-managers.
After deduction of commissions and expenses, net proceeds from the offering will be approximately €294.1 million, which will be used to (i) to repay certain outstanding debt under the borrowing base facility (BBF), (ii) to repay in full and cancel the Intek Group loans, (iii) to pay the costs, fees and expenses incurred in connection with the refinancing and (iv) for general corporate purposes. In connection with the offering, the company said it expects to extend and amend and restate the borrowing base facility and to extend the factoring agreements.
The group had revenue of €1.813 billion and adjusted EBITDA of €77 million LTM to September 2017.
Below is the corporate structure:
The company’s principal shareholder is Intek Group, a public company whose shares are admitted to trading on the Borsa Italiana. Its business activities consist of indirectly managing its holdings in KME AG, I2 Capital Partners (in the private equity and real estate sectors) and other minor participations. Intek Group owns 27,918,276 shares as of Sept. 30, 2017, representing 100% of the total share capital and 100% of voting rights.
Preliminary Offering Memorandum
KME AG, a pan European industrial group, started marketing a new €300 million senior secured bond this morning. The note will have a five-year maturity, carry a fixed coupon and have a call protection NC2, 50%, 25%, par.
The company, one of the global leaders in copper and copper alloy products, will start the road show today and Tuesday in London, move to Milan and Paris on Wednesday, Jan. 31, and finish with Amsterdam and Frankfurt on Feb. 1.
The new note is expected to be rated B3/B and will have New York law documentation. Goldman Sachs, BNP Paribas and Deutsche Bank are joint global coordinators, while Banca Akros, Gruppo Banco BPM are joint bookrunners. Banca IMI and Raffaisen are co-managers.
After deduction of commissions and expenses, net proceeds from the offering will be approximately €294.1 million, which will be used to (i) to repay certain outstanding debt under the borrowing base facility (BBF), (ii) to repay in full and cancel the Intek Group loans, (iii) to pay the costs, fees and expenses incurred in connection with the refinancing and (iv) for general corporate purposes. In connection with the offering, the company said it expects to extend and amend and restate the borrowing base facility and to extend the factoring agreements.
The group had revenue of €1.813 billion and adjusted EBITDA of €77 million LTM to September 2017.
Below is the corporate structure:
The company’s principal shareholder is Intek Group, a public company whose shares are admitted to trading on the Borsa Italiana. Its business activities consist of indirectly managing its holdings in KME AG, I2 Capital Partners (in the private equity and real estate sectors) and other minor participations. Intek Group owns 27,918,276 shares as of Sept. 30, 2017, representing 100% of the total share capital and 100% of voting rights.
This article is an example of the content you may receive if you subscribe to a product of Reorg Research, Inc. or one of its affiliates (collectively, “Reorg”). The information contained herein should not be construed as legal, investment, accounting or other professional services advice on any subject. Reorg, its affiliates, officers, directors, partners and employees expressly disclaim all liability in respect to actions taken or not taken based on any or all the contents of this publication. Copyright © 2024 Reorg Research, Inc. All rights reserved.