Bloomberg News

Investcorp’s Icopal Said to Seek Extension of Buyout Financing

March 22, 2013

Icopal A/S, a Danish building products manufacturer owned by Investcorp SA, is seeking to extend portions of the loans that financed its buyout to 2017, according to two people with knowledge of the matter.

The company is seeking to push the maturities out on about 440 million-euro ($571.8 million) of senior loans, said one of the people, who declined to be identified because the information isn’t public. Icopal’s request comes at a time when it is selling a U.S. division, said the people.

The interest paid on Icopal’s senior ranking borrowings and junior debt, which includes second-lien and mezzanine portions, will increase by 150 basis points, said the people. The divestiture of the U.S. unit would reduce the rate increase to 125 basis points.

Lenders who approved the transaction by March 20 received a 50 basis-point fee, the people said, with those who provide consent by March 27 earning 25 basis points, according to one of the people. A basis point is 0.01 percentage point.

ING Groep NV and Mizuho Corporate Bank Ltd. are coordinating the deal, the people said. Bahrain-based Investcorp spokesman Firas El Amine declined to comment. A spokesperson for Icopal wasn’t immediately available for comment. The company has a payment-in-kind loan that matures in 2018.

Investcorp acquired Icopal for 850 million euros in a 2007 buyout, according to data compiled by Bloomberg. Second-lien debt is repaid after first-lien loans in a liquidation. Mezzanine borrowings rank behind loans, but are repaid before bonds.

To contact the reporter on this story: Julie Miecamp in London at jmiecamp@bloomberg.net

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


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