Mauser AG, a German industrial packager owned by Dubai International Capital LLC, is seeking to extend portions of its debt by as much as two years, according to three people familiar with the matter.
The company, whose buyout in 2007 was backed by 839 million euros ($1.1 billion) of debt, has asked lenders’ permission to extend its revolving credit facility by two years, its term loan B debt by a year and its term loan C by 18 months, said the people, who declined to be identified because the matter is private.
The interest rate on all parts of the extended debt will rise 162.5 basis points, the people said. The margin on the term loan B would be 400 basis points and the term loan C would be 425 basis points, two of the people said. A basis point is 0.01 percentage point.
The transaction is being coordinated by Barclays Plc and Bank of America Corp., the people said.
A London-based spokeswoman for Dubai International, who asked not to be named citing company policy, declined to comment on the deal. Officials at Mauser didn’t respond to an e-mail and a telephone call seeking comment.
Dubai International considered selling the Bruehl, Germany- based business last year, people familiar with the situation said at the time. In 2010 Oaktree Capital Management LLC and Highland Capital Management LP, demanded the company stop using debt buybacks to boost earnings, people said then. The funds and two other investors held more then 66 percent of the company’s senior debt at the time.
The company, formerly known as Mauser-Werke GmbH, makes plastic packaging and metal drums in countries including the U.S., U.K., India and China, according to its website.
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