The Solina group, a food ingredients supplier, has completed the refinancing of its debt with the partial reimbursement of its shareholder loans.
Supported by its majority shareholder, IK Investment Partners, the company has delivered strong organic and acquisition-lead growth and has reached a turnover of more than EUR200 million in 2013.
This strong performance has enabled the company to deleverage significantly since the acquisition by IK in 2011, refinancing its debt structure supported by its current banking pool for a total amount of EUR166 million.
Dan Soudry, partner at IK Investment Partners, says: “The acquisition lines structured at the time of the acquisition by IK in 2011 have been fully drawn to facilitate the financing of the three acquisitions completed under IK’s ownership. The refinancing announced today will therefore benefit the company in several ways. Firstly, it will reduce the total debt service paid by the company with the partial prepayment of the senior Term Loan A. Secondly, it will help decrease the cash and PIK interest paid by the company. Thirdly, the refinancing will enable new acquisition facilities to be structured that will support the company as it pursues its ambitious growth strategy.”
To finance this recapitalisation, Solina used EUR9 million of cash as well as a new senior Term Loan C of EUR60 million. A new committed acquisition line of EUR40 million was made available (and a non-committed acquisition facility of EUR20 million).
All facilities were subscribed by Solina’s existing financing pool composed of CA-CIB, BNP Paribas, CA Ille-et-Vilaine, Rabobank, CIC, CIC Ouest, ING, KBC, Natixis, Banque Palatine, SG, Alcentra, Unigrains, Cerea and LFPI. The deal was co-arranged by BNP Paribas and CA-CIB.
In parallel, Solina has acquired SFK Food, a Danish provider of blends, spices, herbs and marinades.
