Bloomberg News

Materis Said to Extend $2.4 Billion Debt Amendment Deadline

February 28, 2012

Materis SA has pushed back a deadline for lenders to approve extending maturities on about 1.8 billion euros ($2.4 billion) of debt, according to a person with direct knowledge of the proposal.

The building materials supplier, owned by private-equity firm Wendel (MF), has got the minimum two-thirds consent for the extension and is keeping the process open until March 9 to get at least a 90 percent approval rate, said the person, who declined to be identified as the negotiations are private. The original deadline was Feb. 24.

Materis offered lenders increased interest of 4.5 percentage points more than the euro interbank offered rate to extend to 2016 the maturities on senior loans due in 2013, 2014 and 2015, two people said Feb. 17.

Under the proposal the interest margin on Materis’s loans will drop to 4 percentage points, or 400 basis points, if the company’s debt is less than 4.25 times its earnings before interest, tax, depreciation and amortization, the people said. That compares with a ratio of 4.75 under a proposal made in October.

Wendel bought Materis for about 2 billion euros in 2006, with lenders led by agent BNP Paribas SA providing about 1.97 billion euros of loans, according to data compiled by Bloomberg.

Christele Lion, a spokeswoman for Paris-based Wendel, couldn’t immediately comment.

Materis has also asked to lengthen the maturities of its second-lien loans to March 2016 and extend its mezzanine debt to December 2016, said the people. It’s also seeking permission to sell as much as 700 million euros of high-yield bonds to refinance debt and to add 50 million euros to a working capital facility.

To contact the reporter on this story: Stephen Morris in London at smorris39@bloomberg.net.

To contact the editor responsible for this story: Faris Khan at fkhan33@bloomberg.net.


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