CVC Capital Partners Ltd. and KKR & Co. (KKR:US) are said to be planning to seek maturity extensions on loans to their Dutch waste management firm Van Gansewinkel Group BV.
The private equity owners of the Eindhoven-based company want two more years to repay the debt, said two people with knowledge of the matter. At the end of 2011, VGG had 1.55 billion euros ($2 billion) of syndicated loans falling due from this year, according to the company’s website.
The VGG loans were already extended by a year in April 2011 when lenders agreed to accept an extra 150 basis points in interest margin, as well as changes to covenants, according to the website. The loans now pay 337.5 basis points to 400 basis points more than the euro interbank offered rate.
Credit Suisse Group AG has been hired to advise on a strategic review of VGG that may lead to a sale of its energy- from-waste business, said the people who asked not to be identified because the deal is private.
CVC officials in London didn’t respond to a phone call and an e-mail seeking comment. Ludo Bammens, a spokesman for KKR in London, and Vanessa Neill, a London-based spokeswoman for Credit Suisse, both declined to comment.
VGG’s earnings before interest, tax, depreciation, amortization and extraordinary items rose 2 percent to 254 million euros in 2011, according to a statement.
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