France’s Atalian explores refinancing after partial sale to Clayton, Dubilier & Rice

Chicago, March 22 – La Financiere Atalian SCA will be addressing its debt during the 2023 financial year and allocating the final net proceeds of its partial sale and disposal to funds managed or advised by Clayton, Dubilier & Rice, according to multiple press releases.

In late July 2022, CD&R made an offer for the entire share capital and voting rights of the company.

The acquisition was on track and was expected to close in December.

It was put before the competent workers’ councils and needed the approval of Atalian’s shareholders.

However, shareholder Franck Julien balked at selling the company on Dec. 16.

Instead, the deal pivoted to the sale of Atalian’s operations in the United Kingdom, Ireland and Asia, including Aktrion Holdings Ltd., for an enterprise value of €735 million.

That deal closed on Feb. 28.

The €735 million acquisition price was paid as €698 million in cash and a vendor loan note of €55 million with a 7% interest rate and a two-year term.

Debt

Atalian has a revolver due on April 22. Proceeds from the disposal will be used first to repay that fully drawn revolver.

Next of concern in the debt stack is the €625 million of 4% senior notes due in 2024 (ISIN: XS1605600532, XS1605695813).

The company said in February that it would be looking at a partial reimbursement of those notes as part of a deleveraging of Atalian and its subsidiaries.

On the horizon are also €350 million of 5 1/8% senior notes due 2025 (ISINs: XS1820759147, XS1820759576) and £225 million of 6 5/8% senior notes due 2025 (ISINs: XS1820760079, XS1820760319).

S&P Global Ratings noted that with the disposal there is now currency risk on the sterling notes, as the company no longer generates cash flow in this currency.

The agency also reported that the company has 365 days to apply the proceeds from an asset sale under its debt documentation and is contemplating a refinancing of its capital structure.

All three of the notes were up for early conditional redemption if the entire acquisition had gone through.

The redemption was expected as early as Dec. 16, then postponed when the acquisition was still expected to be completed, and canceled when the terms changed.

The company is a Paris-based provider of facility management and outsourced building services. Atalian was established in 23 countries across four continents, according to the company’s website.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.