February 5, 2020 / 1:07 PM / 16 days ago

Banks line up €500m debt for Ardian’s Cerelia buyout

LONDON, Feb 5 (LPC) - Banks have lined up around €520m of leveraged loans to fund private equity firm Ardian’s acquisition of Cerelia, a French company that makes pizza dough and cookies, banking sources said on Wednesday.

Ardian agreed to buy Cerelia from IK Investment Partners, it announced in December 2019.

It asked banks for financing proposals in January and has now appointed six banks to underwrite an all senior leveraged loan financing that will launch for syndication to investors shortly, the sources said.

BNP Paribas, Societe Generale, ING, Natixis, Bank of Ireland and RBC are leading the financing, which comprises an approximate €420m term loan B and a €100m revolving credit facility.

The TLB will be mainly denominated in euros but will also include some dollars, to better match Cerelia’s cashflows. Leverage will total around 5.5 times Cerelia’s approximate €75m Ebitda.

Ardian was not immediately available to comment.

“Cerelia is an excellent business, which is completely acyclical and has incredible market share. It is blowing it in Europe and has moved into the US market,” a banker said.

Cerelia raised €300m of senior debt to back an acquisition of North American cookie specialist English Bay Batter in 2017. At the same time it refinanced its existing debt. That loan was provided by Bank of Ireland, BNP Paribas, Credit Mutuel CIC, Credit Agricole, ING, Natixis and Societe Generale.

Headquartered in Paris, Cerelia employs over 1,600 people, operates 12 facilities across Europe and North America and sells products in more than 50 countries around the world, generating around €500m of revenue. (Editing by Christopher Mangham)

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