Cinven's CPA in dividend recap

The refinancing will comprise a £225m, seven-year term loan B; a £210m (€250m) term loan B; a £185m second lien facility with a maturity of seven-and-a-half years and a £50m undrawn revolving credit facility, a source close to the deal told unquote".

CPA's current mezzanine loan will be replaced by a cheaper, second lien loan. The deal will change CPA's debt from euros and sterling to euros and dollars.

JP Morgan, Deutsche Bank and HSBC have been appointed to lead the refinancing, with Bank of Ireland and Mizuho acting as co-arrangers. The refinanced facility will be covenant-light, with no maintenance covenants.

The proposed refinancing follows somewhat quickly on the heels of Cinven's acquisition of CPA, which took place last January and saw the GP purchase the company from Electra Private Equity and Intermediate Capital Group. The transaction was valued at around £950m, according to unquote" data. HSBC and JP Morgan underwrote a senior debt facility for Cinven's acquisition of the business totalling £430m.

The refinancing will benefit CPA, the source stated, by reducing its weighted average cost of debt servicing. The deal is possible because of CPA's financial performance – the source stated that the company's EBITDA has grown by 20%. A bank meeting is being held today (6 November) regarding the proposed refinancing.

Founded in 1969, CPA is headquartered in Jersey with a number of international offices. The company employs approximately 1,700 staff.

CPA provides intellectual property (IP) management services and software to corporations and law firms. The company assists its clients in managing IP rights, such as trademarks, patents and designs. The company also provides outsourced legal services.

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• UK / Ireland
• Cinven
• United Kingdom