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LONDON, March 27 (Reuters) - A US$921m-equivalent dividend recapitalisation for French packaging group Albea Beauty is set to gift shareholders around €150m in a dividend payment, banking sources said on Monday.
Sun Capital put Albea up for sale last year with the help of investment bank Lazard and first-round bids were due in November. However, bankers were invited to pitch alternatives in January after Sun Capital struggled to agree a price with front running bidder British packaging group RPC.
It has now launched a cross-border dividend recapitalisation, led by bookrunners BNP Paribas and Goldman Sachs on the euros and dollars, respectively. Credit Agricole and HSBC are mandated lead arrangers.
A US$816m, dual-currency seven-year term loan B, is guided to pay 400bp over Euribor, with a 0% floor on the euro tranche and 375bp-400bp over Libor, with a 1% floor on the dollar tranche. Both are offered at 99.5 OID.
Lenders have been asked to commit to the financing by April 10, following a bank meeting on March 27.
The financing also includes a US$105m, six-year revolving credit facility, with a springing leverage covenant.
Proceeds will pay the dividend to shareholders, refinance the company’s outstanding dollar-denominated 8.75% bonds due 2019 and euro-denominated 8.375% bonds due 2019 and repay other existing debt.
Sun Capital was not immediately available to comment.
Headquartered in France, Albea produces packaging for the make-up, fragrance, skincare, personal and oral care markets. It has 34 manufacturing facilities in 13 countries across Europe, the Americas and Asia. (Editing by Alasdair Reilly)