Candover Investments secures €52 million term loan from 17Capital

By Lisa Kerner

Charlotte, N.C., July 13 – Candover Investments plc entered into a new five-year term loan facility with 17Capital LLP for up to €52 million.

The loan features payment-in-kind interest at 13% per annum, which will roll-up and be paid when the loan is repaid, according to a company news release.

The loan is subject to a minimum repayment amount calculated as if the loan had been outstanding for 2.75 years, reduced to 1.15 years for any amounts repaid within the first 12 months, up to a maximum of €19.4 million.

Proceeds will be used to repay existing U.S. private placement notes at par and for ongoing working capital requirements, according to a news release.

Under the terms of the loan, Candover may return £21.8 million (equivalent to 100 pence per share) to shareholders before debt repayment.

As of June 30, Candover had $83.9 million (£53.1 million) of U.S. private placement notes outstanding, maturing Dec. 31, 2015.

Candover had net debt of £32.3 million, including the outstanding U.S. private placement notes, less £20.8 million of cash and cash equivalents at June 30.

Rothschild advised the company.

Candover is a London-based private equity trust.

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