London: 25 October 2013 -- GE Capital and Ares Management Ltd. have acted as Mandated lead Arrangers for €115 million of senior unitranche facilities for Nicotra-Gebhardt, a mid-market, Italian portfolio company of Ergon Capital. Proceeds of the facilities were used to fund the acquisition of Industrie CBI and refinance existing indebtedness.
This financing represents the latest transaction from GE Capital and Ares Management's "European Senior Secured Loan Programme" (ESSLP) joint venture for unitranche funding. The €1.75bn programme, the first of its kind in the European debt market, is structured to provide flexible unitranche financing solutions to European mid-market borrowers.
Chris Fowler, Executive Director at GE Capital, said: "This deal highlights the strengths of Unitranche financing as a compelling alternative to existing finance structures, particularly as traditional lenders may be scaling back their commitments. We were able to add value through the flexible structure, ultimately improving terms and reducing the overall cost of capital."
Tyrone Cooney, Managing Director at Ares Management Ltd., said: "Through the ESSLP programme, GE Capital and Ares have a healthy deal pipeline in place targeting the European mid-market. With M&A activity, refinancings and dividend recap activity from earlier in the year still being actively pursued, the outlook is healthy for 2014 and beyond."
Through the Unitranche structure, GE Capital and Ares were able to provide Nicotra-Gebhardt with a one-stop financing solution, making available undrawn and term facilities to its Italian and German subsidiaries.
Nicola Zambon, Partner at Ergon Capital and Non-Executive Director at Nicotra-Gebhardt, said: "GE Capital and Ares have provided a compelling solution for a very complex transaction. They have been a supportive partner to us throughout, demonstrating a clear understanding of our long-term industrial project and helping us reach our goals to drive future growth."
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Tom Steiner
GE Capital EMEA
[email protected]
+44-(0)-208-185-2494