Quadriga's Ipsen in dividend recap

Nicole Tovstiga
29 August 2018

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German heat treatment systems provider Ipsen International has completed a refinancing, allowing a dividend payment to its owner Quadriga Capital.

The dividend payout saw Ipsen International take the debt fund route, with Barings providing a unitranche financing package. Meanwhile HSBC and ABN Amro are providing super-senior guarantee lines and a rolling credit facility, according to a press release by debt adviser Alantra. The debt package also includes an acquisition line.

In total, 20 banks and 12 debt funds were involved in the auction process for the recap, Alantra stated.

Unquote sister publication Debtwire had previously reported that financiers were working on the basis of the company's €30m EBITDA, and pitched financing options to the sponsor in May earlier this year.

Public documents indicate that Ipsen reported €25.1m adjusted EBITDA on €187.2m in revenues in 2016. This was up from €20.3m adjusted EBITDA on €175.8m in revenues the year before.

Previous funding
Quadriga Capital and the management team wholly acquired Ipsen Group from Luxembourg-based Elster Group in November 2007.

According to reports by Debtwire, the group refinanced in 2014 when it secured a euro- and dollar-denominated financing package, which matures next month. It included a $53.1m-equivalent amortising unitranche facility, a €21.9m bullet mezzanine facility, a $7.5m-equivalent rolling credit facility, a €15m guarantee facility, and €10m additional credit lines. Ipsen had drawn €12.7m of the guarantee line at the end of 2016.

Outstanding bank debt totalled €85.6m as of 31 December 2016, which was 3.6x the company's reported EBITDA that year.

Company
Founded in 1948 and based in Kleve, Germany, and Rockford, US, Ipsen is a provider of automated heat treatment facilities, which improve the structural conditions and load-bearing capacity of metals – in particular steel and titanium.

The company sells mainly to the medical technology, wind energy generation, aviation and food industry sectors.

It has 25 global subsidiaries and around 900 employees.

People
Quadriga Capital – Jörg Mugrauer (partner).