Relevant Document:Year-End Report 2019
The leverage through EQT Credit’s unitranche to back Gilde’s buyout of Corilus was 9x and the loan pays interest between 7% and 7.25%, sources told Reorg.
Gilde offered an EV multiple of 19x to win the deal, sources said.
Several credit funds dropped out of the bidding because they could not match EQT’s leverage level and terms, sources said. Lenders had been working off an EBITDA of between €10 million and €15 million as a result of varying calculations of capital R&D expenditure, sources added.
Gilde bought Corilus from Benelux-focused private equity firm AAC Capital. EQT does not plan to sell down, sources said.
The financing is provided through the €1.8 billion EQT Mid-Market Credit II fund, as reported
Sources noted that the effects of the coronavirus pandemic have led most alternative lenders in the middle market to seek margins of up to 8% with interest levels hiked by 100 basis points to 200 basis points on the average unitranche, depending on the strength of the asset.
Before the Covid-19 outbreak, EQT announced
plans to put its credit arm under review, which sources said could result in the sale of the unit. JPMorgan was appointed as financial advisor to evaluate the options, according to the fund’s 2019 report.
Corilus offers medical software solutions such as practice management systems, communication tools, electronic patient records, data exchange and billing systems for the healthcare sector.
All parties declined to comment.
-- Emma Roche, Kerstin Kubanek