In November, CSFB Private Equity, Blackstone Capital Partners and NIB Capital Private Equity acquired Nycomed, a leading mid-size European pharmaceutical firm, from Nordic Capital. The deal was worth e1.15bn, representing 9.1 times 2002 adjusted Pro Form Ebitda.
The transaction was levered with 2.2 times Ebitda of net senior debt and 4.7 times Ebitda of net total debt with a 50% equity contribution. The debt comprised senior securedfacilities of e430m, which was successfully syndicated and substantially over-subscribed, and a bridge loan of e350m.
The bridge loan was refinanced with a e225m bond and subordinated mezzanine piece of e70m, and the balance was repaid by the company.
The deal was noted for its success in addressing complex inter-creditor issues between senior lenders, bridge lenders, bondholders and mezzanine investors. It was also the first European leveraged buyout (LBO) to be issued with an ‘enhanced’ structure.
The bond was issued during tough market conditions, but was well received. This was the first transaction in Europe to issue a junior mezzanine tranche with a high yield bond.
