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Telepizza SA, a Spanish pizza- delivery company owned by Permira Advisers LLP, is seeking approval from lenders to extend the maturities of its loans to as long as 2017, according to a person with knowledge of the matter.
The company, which has about a 70 percent market share in Spain, wants to extend the maturity of 60 percent of the term loan A, revolving credit, and capital expenditure facilities to 2015 from 2013, said the person, who declined to be identified because the deal is private. It also wants to boost the term loan B to 2016 from 2014, term loan C to September 2016 from 2015, and second-lien loan to March 2017 from 2016.
Permira is offering to inject 35 million euros ($45 million) of equity into the Madrid-based company to help it prepay senior debt, said the person. The private equity firm plans to start the process this week.
Telepizza proposed to increase the interest margins on the revolving credit, capital expenditure facility and term loan A by 200 basis points, and the margins for term loan B and term loan C to 450 basis points, and second-lien to 600 basis points from 400, said the person.
Lenders agreeing to the request by May 16 will get 50 basis points of fees while those coming in by May 24 will get 35 basis points, the person said. A basis point is 0.01 percentage point.
ING Groep NV and JPMorgan Chase & Co. are coordinating the amend and extend request that will also allow Telepizza to loosen covenants for five quarters, said the person.
Telepizza’s earnings before interest, tax, depreciation and amortization rose 5.3 percent in the first quarter from a year earlier, or 2.5 percent above target, said the person.
A spokesman in London for Permira, who wouldn’t be identified citing company policy, declined to comment.
Permira bought Telepizza in September 2006. ING and Royal Bank of Scotland Group Plc led lenders providing 726 million euros of loans for the buyout, according to data compiled by Bloomberg.
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