Duisburg, Germany, January 27, 2017. Lone Star Fund X (“Lone Star”) and Xella International S.A. (together with its subsidiaries and affiliates, “Xella”) are upsizing the senior secured credit facilities (the “Facilities”) from the previously announced €1,325.0 million to €1,575.0 million comprising of (i) a €1,400.0 million (previously €1,150.0 million) 7-year covenant-lite term loan B facility and (ii) a €175.0 million 6.5-year revolving credit facility. The previously envisaged €250.0 million senior secured notes due 2024 that were expected to be issued by LSF10 XL Bidco S.C.A., a financing vehicle indirectly owned by Lone Star, will not be issued. As a result, the overall debt financing quantum and leverage are unchanged. The Facilities are arranged by Credit Suisse International, Goldman Sachs International and Morgan Stanley Bank International Limited as Joint Physical Bookrunners and BNP Paribas Fortis SA/NV, BNP Paribas, London Branch, Jefferies Finance Europe, SCSP, Crédit Agricole Corporate and Investment Bank Deutschland, Niederlassung einer französischen Société Anonyme, UniCredit Bank AG, Barclays Bank PLC and Deutsche Bank AG, London Branch as Joint Bookrunners.
The proceeds from the Facilities, together with shareholder funding, are intended to finance the previously announced acquisition of Xella by Lone Star (the “Acquisition”), repay existing indebtedness of Xella and to fund transaction expenses. The closing of the Acquisition is subject to customary conditions, including, among other things, certain antitrust and regulatory approvals. Lone Star currently expects the Acquisition to close in early March 2017.
Xella is a leading European producer of premium branded building solutions and lime products. Headquartered in Duisburg, Germany, Xella operates 95 plants in 20 countries and has established sales organizations in more than 30 countries. Xella is organized into three business segments, Building Materials, Dry Lining and Lime, and is a market leader across all of its segments.
The information contained in this release may contain forward-looking statements, estimates and projections. These statements involve elements of subjective judgment and analysis and are based upon the best judgment of Xella as of the date hereof. These statements are subject to change without notice and are based on a number of assumptions and entail known and unknown risks and uncertainties, as there are a variety of factors that may cause actual results and developments to differ materially from any future results and developments expressed or implied by such forward-looking statements. Therefore, you should not rely on these forward-looking statements. Neither Xella nor any other person gives any undertaking, or is under any obligation, to update these forward-looking statements for events or circumstances that occur subsequent to the date of this release or to update or keep current any of the information contained herein and this release is not a representation by Xella or any other person that they will do so, except to the extent required by law.
This release and the information contained herein are for information purposes only and do not constitute a prospectus or an offer to sell, or a solicitation of an offer to buy or subscribe for, any securities in the United States of America or in any jurisdiction in which such offer or solicitation is not authorized or to any person to whom it is unlawful to make such an offer or solicitation. Any securities referred to in this release have not been and will not be registered under the U.S. Securities Act of 1933, as amended (the “Securities Act”), or the laws of any state of the U.S., and may not be offered, sold or otherwise transferred in the U.S. absent registration or pursuant to an available exemption from registration under the Securities Act. No money, securities or other consideration is being solicited, and, if sent in response to the information contained herein, will not be accepted.