Bormioli Pharma Bidco spa is launching a 275 million euros bond whose proceeds will be party used to finance the acquisition of the pharma division of glass bottles maker Bormioli Rocco spa by Triton Capital private equity firm, announced last July. The fumd will also invest 120 million euros in cash equity.
Triton Capital and Bormioli Luigi actually announced last July that they would have bought together Bormioli Rocco from Vision Capital, with an agreement to separate the pharma and the tableware divisions into two different newcos, while all the Bormioli Rocco’s debt would be repaid. Triton Capital will then buy the pharma division while Bormioli Luigi will buy the tableware division using its own cash flow.
Moody’s assigned a B2 rating and a stable outlook to the new bond and to Bormioli Pharma Bidco itself yesterday. The bond is senior secured and matures in October 2024. Credit Suisse, Bnp Paribas e UniCredit are joint global coordinator, Banca Imi is joint bookrunner.
Moody’s says that Bormioli Pharma capital structure includes a 40 million euros supersenior revolving credit facility (which eill not be used at the close) and a 30 million euros factoring line.
All that brings the company’s leverage to 5.8x ebitda while the company has 10 million euros in cash and is expected to be cash positive even if in 2018-2019 a renewal of the furamce plant in Bergantino is expected.
The revolving facility is subject to a 7.9x ebitda net debt covenant to be verified esch quarter if the line is used for at least 35 pct.
Bormioli Rocco reached 450 million euros in revenues in 2016 half and half between the two divisions with 70-75 million euros in ebitda if which about 50 millions from pharma and 20 millions from tableware.
Vision Capital had previously sold Bormioli’s cosmetic division in december 2013 to Austrian Stölzle Glass Group and the food&beverage division to Swiss Vetropack Holding in June 2015.
Vision Capital ahad bought the group in 2011 from Banco Popolare and had financed the buyout issuing a 250 million euros bond (issued by Bormioli Rocco Holdings sa), paying a 10% coupon and maturing in August 2018. That bond, listed at the Luxembourg Stock Exchange, will be totally reimbursed by next November 24th, as it was announced by the company to bondholders a few days ago.
