Oaktree Capital Group LLC is seeking 225 million euros ($290 million) of loans for its Ileos Group unit, a packaging company for beauty products it bought at the end of last year.
Lenders are invited to investor presentations in Paris and London on Nov. 28 and Nov. 29, respectively, according to an statement from arranger Goldman Sachs Group Inc. The senior secured loans include a 195 million-euro seven-year term loan B paying an interest margin of 500 basis points more than benchmarks, it said. A basis point is 0.01 percentage point.
Oaktree Capital acquired Nanterre, France-based Ileos in December 2011 from 21 Centrale Partners. Ileos then agreed to buy U.S. perfume-bottle maker Le Papillon last month for about 53 million euros, according to Goldman Sachs.
The other portions of the deal are a 15 million-euro six-year revolving credit facility and a 15 million-euro six-year debt earmarked for acquisitions, both paying an interest margin of 475 basis points. The term loan B includes a portion that will be available in dollars. Libor, a rate banks say they can borrow from each other, will have a 1.25 percent floor.
The company’s leverage ratio, measuring its debt level to earnings, will be 3.67 times, according to the statement.
Under a revolver, money repaid can be borrowed again. Term Loan B’s are typically sold to non-bank investors such as collateralized loan obligations, bank loan mutual funds and hedge funds.