ADB Airfield Solutions, a provider of airfield lighting, set the rate it will pay on 169 million euros ($220 million) of debt supporting PAI Partners’ buyout of the business, according to two people with knowledge of the matter.
The 37 million-euro term loan A due in 2019 may pay interest of 425 basis points more than benchmarks while a 72 million-euro term loan B maturing in 2020 may pay 475 basis points, said the people, who declined to be identified because the deal is private. A basis point is 0.01 percentage point.
The financing also includes a 35 million-euro guarantee facility, a 10 million-euro capital expenditure loan and a 15 million-euro revolving credit facility, the people said. Under a revolver, money repaid can be borrowed again.
The Brussels-based company’s ratio of debt to earnings before interest, taxes, depreciation and amortization ratio is 4.5 times, according to data compiled by Bloomberg.
Loan arrangers Bank of Ireland, BNP Paribas SA and UniCredit SA have scheduled a meeting with lenders in Brussels today to discuss the transaction, people with knowledge of the deal said previously.
Rosanna Konarzewski, a London-based spokeswoman for PAI Partners, declined to comment. Company officials didn’t return calls requesting comment.