FINLAND - EQT proposes EUR 100m Sanitec equity injection

According to a statement published by Sanitec, the negotiations began in early January. In mid-February, the parties reached an agreement for an extension of its standstill agreement until the end of April 2009.

In May last year, reports suggested that EQT had offered to inject EUR 70m into the business following a covenant breach. The equity injection was then intended to pay down EUR 51m of its tranche A loan, as well as a tranche D restructuring facility.

Bjørn Hoi Jensen, senior partner of EQT, said in a statement at that time that EBITDA was expected to grow from EUR 156.7m in 2007 to EUR 167m in 2008. According to a statement from Sanitec on Monday, the company generated preliminary revenues in 2008 of EUR 880m, with an EBITDA weighing it at just over EUR 100m.

EQT acquired the the business in 2005 for around EUR 1.3bn, with Royal Bank of Scotland leading a consortium of banks that provided the hefty debt package to support the deal.

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