The funds will be used to refinance a more expensive vendor loan note in full, partially repay shareholder loans and finance a dividend to shareholders, the Netherlands-based company said.
3i own 75 per cent of Action and will receive a total cash distribution of £58m from this transaction. This will be recognised as realisation proceeds, the firm said, and contribute to the amount included in our distribution calculation for FY 2014, which now totals £723m.
3i Group invested in Action in June 2011, acquiring a majority stake in the business. Since then, the company has increased its EBITDA from €71m in FYE 2010 to €99m in FYE 2012. This has enabled the company to “rapidly” de-lever and enable it to undertake add-on financing.
Established in 1993, Action offers a selection of branded and non-branded product categories, including DIY, personal care, household, textiles and seasonal products through 369 stores. A further acceleration is planned for 2013, with 48 new stores having already opened this year.
Menno Antal, managing partner and co-head 3i Private Equity, said, “New financing commitments were significantly oversubscribed, indicating the quality of Action’s credit. Action continues to grow and internationalise at an impressive rate and this only reaffirms our investment case. We’re committed to using our knowledge, experience and network to support Action achieve its business strategy.”
Action mandated BNP Paribas, Natixis, Rabobank and UBS to arrange the €275m term loan C add-on financing. The transaction saw strong from a syndicate of banks and funds, with both existing and new lenders committing to the add-on facility, 3i said.
Copyright © 2013 AltAssets