LBO France's Diam in €20m refinancing

Greg Gille
02 December 2015

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Diam International, a French portfolio company of LBO France, has refinanced its existing debt.

The new senior debt package is understood to comprise a tranche A amounting to €10m, as well as a European private placement (Euro PP) instrument, also totalling €10m. In addition, the business negotiated a €2m revolving facility and a €5m working capital line, which is yet to be drawn and will be used to finance bolt-ons and capital expenditure.

Overall, Diam will now be leveraged at less than 2x EBITDA, according to a source close to the situation. Besides financing the growth of the business, the refinancing was also arranged to replace the costly mezzanine facility put in place as part of the original deal in 2012.

LBO France finalised the acquisition of point-of-purchase display manufacturer Diam International from HIG Capital in October 2012.The secondary buyout reportedly valued Diam at €70m, including €20m of senior debt. HIG reinvested in the form of a €10m mezzanine tranche.

Company
Founded more than 40 years ago, Diam designs and manufactures point-of-purchase (POP) advertisement displays, with a specific focus on the high-end cosmetics industry. It is expected to post a turnover in the region of €190m for 2015.