LevFin Wrap - HY still in Labor, Solenis delivered early
- Huw Simpson
- +Laura Thompson
High Yield Primary
Following Labor Day in the US, there were just two new deals in European primary this week, with Monday widely ticketed as the real launch date for several new issuances.
The main news of the week came via Platinum Equity and its $5.25bn acquisition of Solenis, the water chemical treatment and control systems manufacturer. The plan is to combine the business with Sigura, an existing Platinum portfolio company acquired in 2019, which supplies sanitisers and other water treatment services in the pool and spa care market. The combined group will have an EV of $6bn, generate around $3.5bn in sales, and $613m in Pro Forma Adjusted EBITDA.
The financing will include $1,400m (equiv.) of TLBs due 2028, $1,400m (equiv.) of Senior Secured Notes due 2028 (B2/B-) and $1,000m (equiv.) of Senior Notes due 2029 (Caa2/CCC+), all split across EUR and USD tranches. A new $500m asset based RCF will also be $175m drawn on closing of the transaction.