Materis amends debt structure to change pricing, defer amortization

By Sara Rosenberg

New York, June 25 - Materis, a subsidiary of investment firm Wendel, amended its debt, revising pricing, deferring €290 million of amortization to 2013 and providing for the €100 million acquisition and capital expenditure facility, according to a news release.

Under the amendment, pricing on €370 million of the company's amortizing debt was increased by 75 basis points.

Also, covenants were reset on the basis of a revised business plan taking into account the economic downturn, there is an additional €40 million basket of factoring and the company will be allowed to perform debt buybacks in the secondary market.

In addition, the amendment provides for the capitalization of mezzanine interest, which gives the company €70 million of additional liquidity by 2013.

As part of the amendment, Wendel will contribute €36 million of equity and Materis will contribute €9 million of equity for the 550 manager investors of Materis.

Lenders were paid a 25 basis point consent fee.

The debt package structured in 2006 for the acquisition of Materis by Wendel included €1.545 billion of senior debt, €140 million of second-lien and €260 million of mezzanine.

Materis is a France-based producer of specialty chemicals for the construction industry.

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