Gilde writes down Novasep investment

Under the terms of the restructuring, 95% of the capital will be secured by lenders according to French daily Les Echos. US credit funds Tennenbaum, Silver Point and Pimco will reportedly hold a 50% stake in Novasep.

French sovereign wealth fund FSI will invest a further €30m in the business, while management is understood to be giving up its 30% stake. Novasep's debt will be reduced from around €400m to €150m.

Gilde is understood to have been rooting for a merger with chemicals group Minafin rather than a restructuring, although a deal did not materialise.

The GP, together with minority investor Azulis Capital, backed the €425m MBO of synthesis and purification solution manufacturer Novasep in 2006. The €310m debt package, which was arranged by ING and HVB, was largely bullet and included a large capex facility, some mezzanine and second lien debt.

The company breached a covenant on its loans earlier in the year. It previously refinanced the original debt structure by issuing a €375m equivalent euro/US dollar dual-tranche bond on the high-yield market in 2009.

Novasep manufactures and distributes a range of chemical and biochemical synthesis products for the pharmaceutical industry. It is aiming to post a €290m turnover and €40-45m EBITDA for 2011, according to a Novasep spokesperson.

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