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LPC-Shareholders set for payout in Socotec’s €425m dividend recap
July 4, 2017 / 3:23 PM / 2 months ago

LPC-Shareholders set for payout in Socotec’s €425m dividend recap

LONDON, July 4 (Reuters) - Shareholders to French technical and inspection services provider Socotec Group are set to take around €140m as a dividend payment from a broader €425m loan refinancing, banking sources said on Tuesday.

BNP Paribas and Credit Suisse are leading the dividend recapitalisation, alongside Credit Agricole and Societe Generale, and a bank meeting is set to take place on Thursday to show the deal to lenders when more details will emerge.

Lenders have been asked to commit to the financing by July 20.

The financing comprises a €355m seven-year covenant-lite term loan and a €70m six-year revolving credit facility.

Proceeds will refinance existing debt, repay an equity bridge used for the acquisition of UK-based testing and services firm ESG, fund a distribution to shareholders and pay related fees and expenses.

The corporate and issue rating is B2/B, with a recovery rating of 4.

Socotec raised a €236m loan in 2013, backing its buyout by a consortium of private equity firms including Cobepa and Five Arrows Principal Investments from Qualium Investissement. That deal was supported by a 60% equity cushion. (Editing by Christopher Mangham)

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