KKR & Co. will surrender part of its stake in do-it-yourself chainstore operator Maxeda BV as part of a restructuring deal with lenders, according to three people familiar with the matter.
The private-equity manager, together with AlpInvest Partners BV, Cinven Ltd. and Permira Holdings Ltd., is seeking to write off about 200 million euros ($217 million) of junior loans due in 2018 in exchange for equity in the Amsterdam-based company, said the people, who asked not to be identified because it’s private.
The restructuring follows the failure by the private equity investors to find a buyer for the business last year. Maxeda’s management told creditors it also wants to extend the maturity of about 600 million euros of senior loans and credit facilities to 2019 and will pay higher interest margins, the people said.
Nina Suter, a spokeswoman for KKR employed by RLM Finsbury, Vanessa Maydon, a spokeswoman for Cinven, and David Howes Smith, a spokesman for Maxeda, declined to comment on the restructuring plan. Maaike Van Der Schoot, a spokeswoman for AlpInvest, didn’t return calls and e-mails seeking comment on the plans. Noemie de Andia, a spokeswoman for Permira, wasn’t immediately available to comment.
The deal is the second the buyout firms have had to strike with Maxeda lenders in the past two years, after extending the original debt maturities by as much as two years from 2015 and 2016. The retailer’s earnings fell for six consecutive years to 101 million euros in the last financial year ended in January 2014, a 5 percent decline from 2013, according to Maxeda’s annual results.