Eurazeo's Apcoa Parking reduces debt by €440m

Harriet Bailey
22 August 2014

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French private equity house Eurazeo and several lenders have agreed to a financial restructuring for German parking services manager Apcoa Parking.

Apcoa's private equity owner Eurazeo and 95% of the company's lenders have supported a formal lock-up agreement to reduce the company's debt in a debt-for-equity swap. Lenders will take over the company and be bound by the terms of the restructuring agreement.

The group's original €650m full-bullet, senior-only debt package was provided by Mizuho and Royal Bank of Canada, according to unquote" data. The refinanced facilities will be extended for a further six years.

The lenders have already extended the maturity date of the current financing to 25 October 2014 to allow time for the restructuring programme to be implemented. This is being arranged by a UK Scheme of Arrangement, which is expected to conclude in October.

Apcoa has also received €90m in new funding from Deutsche Bank. This will support the company's growth and capital investment programme.

Previous financing
Eurazeo bought Apcoa from Investcorp for an enterprise value of €885m in mid-2007 in a UBS-run auction process. The deal was Eurazeo's first outside France. It planned to expand the company's commercial operations in France, Spain and the Baltic countries.

In the summer of 2004, Investcorp acquired 98.26% of Apcoa from Salamander, a subsidiary of EnBW Energie Baden Württemberg. In 2006, Investcorp mandated Dresdner Kleinwort Wasserstein to lead the refinancing of Apcoa. No equity was taken out in the course of the refinancing.

The refinancing aimed to replace the existing vendor loan with a new term loan B amounting to €45m and paying a margin of 250 bps. Margins on tranches B and C were reduced by 25 bps each to 230 and 300 bps respectively, with the margin ratchet adjusted.

Company
Founded in 1970, Apcoa manages car parking in 12 European countries. It operates approximately 1.4 million parking spaces at 7,400 locations. It also manages the parking facilities at 30 European airports.

Headquartered in Stuttgart, it has 4,700 employees and an annual turnover of €678m.

People
Ralf Bender is Apcoa's CEO.