Ardian's Novacap in €310m refinancing

Ellie Pullen
12 May 2014

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Ardian-backed French chemicals group Novacap has completed a €310m refinancing on the high-yield bond market.

The issue comprises €310m of senior secured floating rate notes, to mature in 2019. The notes have an interest rate equal to three-month Euribor plus 5% per year.

The company has also secured a €65m super-senior revolving credit facility.

Goldman Sachs acted as the lead bookrunner for the refinancing, with support from Deutsche Bank, BNP Paribas and Societe Generale.

The refinancing will allow Novacap to continue its ongoing buy-and-build growth strategy under Ardian's ownership.

Previous investment
Ardian (then Axa Private Equity) acquired a 96% stake in Novacap in January 2011. The firm bought the business from Bain Capital via a Rothschild-run auction process. The transaction valued Novacap at €240m.

Ardian invested via its €1.6bn Axa LBO Fund IV. According to unquote" data, a €209m debt package was supplied by BNP Paribas, Societe Generale and HSBC for the buyout.

The GP then supplied acquisition financing to Novacap in November 2011 for the purchase of French chemical group Rhodia's salicylic and acetaminophen businesses, which were renamed Novacyl.

Last year Novacap also acquired a 51% stake in Taixing Yangzi Pharm Chemical, a Chinese producer of para-aminophenol, the main raw material used for the production of paracetamol.

Bain had acquired Novacap in November 2012 for €150m, spinning it out as the European commercial and industrial activities division of Rhodia. A mezzanine facility of €10m was supplied by JP Morgan Private Equity, according to unquote" data.

Company
Lyon-headquartered Novacap produces speciality chemicals for the pharmaceutical, food, animal feed, cosmetics, fragrances and homecare sectors. The group comprises three divisions: mineral specialities, pharmaceuticals and cosmetics, and performance chemicals.

The company employs 1,245 staff and operates 11 facilities worldwide. Novacap claims to have 650 customers across 80 countries.

People
Pierre Luzeau is the president of Novacap. Managing director Thibault Basquin, director Olivier Personnaz, and senior investment manager Arnaud Tardan worked on the transaction for Ardian.

Advisers
Ardian – Latham & Watkins, Thomas Forschbach, Gaetan Gianasso, Natacha Guelibolian (Legal).
Company – White & Case, Colin Chang, Julien Chameyrat, Camille Note (Legal); Latham & Watkins, Olivia Rauch-Ravise, Mathieu Denieau (Legal); PwC Transaction Services, Philippe Gueguen, Philippe Chavanne (Corporate finance).
Management – Opleo Avocats, Pierre-Olivier Bernard, Antoine Degorce (Legal).
Debt – Milbank, Peter Schwartz, Laetitia Costa (Legal).