5 March European Bank for Reconstruction and Development 2013

Transcription

1 Case Study: EUR 232m Atlantic Grupa Syndicated Lan 5 March 2013 Eurpean Bank fr Recnstructin and Develpment

2 The largest syndicated lan in Suth-East Eurpean crprate sectr President f the EBRD, Sir Suma Chakrabarti, said: The EBRD has reaffirmed its cmmitment t the regin The deal with Atlantic Grupa - a great example f cperatin between the EBRD and IFC - shws that well managed crpratins, such as Atlantic Grupa, can attract cmmercial financing even despite cntinuing deleveraging in SEE Emil Tedeschi, President and CEO f Atlantic Grupa said: Atlantic Grupa has nce mre cnfirmed its standing as a cmpany that thanks t its prudent strategy, respnsible management and transparent cmmunicatin, enjys the cnfidence and supprt f esteemed internatinal develpment institutins and the financial cmmunity. We are exceptinally glad that ur effrts, respnsibility and quality have been recgnised by the renwned institutins such as the EBRD and IFC, as well as ur partner banks with financing t supprt ur develpment 2

3 Atlantic Grupa Syndicated Lan Facility a landmark transactin in 2012 EUR 232m syndicated lan t subsidiaries f Atlantic Grupa, ne f the biggest fd prducers in Suth East Eurpe (signed Nvember 2012) The facility is part f a EUR 307m financing package, cnsisting f: EUR 232m EBRD A/B Lan EBRD A Lan: EUR 60m EBRD B Lan participants included reputable cmmercial banks: UniCredit Bank Austria (EUR 60m) Raiffeisenbank Internatinal (EUR 60m) Sberbank Austria (EUR 40m) Erste Bank (EUR 12m) EUR 50m IFC parallel lan EUR 25m parallel wrking capital lan frm Raiffeisen Grup and UniCredit Grup The transactin allwed Atlantic Grupa t strengthen its balance sheet thrugh replacement f existing acquisitin debt (EUR 272m) and wrking capital facilities (EUR 25m), as well as supprt energy efficiency investments (EUR 10m). 3

4 Atlantic Grupa as the right partner fr EBRD Atlantic Grupa has been a trusted reginal partner f the EBRD since It cntinues t be a reginal trend-setter: 2007: successful IPO n the Zagreb Stck Exchange 2010: largest reginal M&A transactin, i.e. a EUR 382m acquisitin f Drga Klinska ( DK ) financed via a UniCredit and Raiffeisen Grup led syndicated lan, EBRD mezzanine and equity in the midst f a reginal ecnmic crisis : successful integratin f DK indicated by e.g. recrd capacity utilizatin and sales at AG s cnfectinary business in Serbia (Sk Štark), launch f ver 150 brand extensins and new prducts acrss the Grup 2012: largest syndicated financing facility in the regin High standards f crprate gvernance and prudent management, with cnsistent delivery f financial targets an example that establishing a prper crprate culture and quality f the team makes a difference A strng fit fr EBRD in the SEE reginal and beynd (Russia, SEMED) 4

5 A new financing structure fr the Grup s enhanced credit prfile and business needs Fllwing a perid f successful integratin, the Grup emerged with an enhanced prfile (successful reginal integratin and synergies, cnsistent financial deleveraging) The riginal M&A structure n lnger suited the needs f the pst-integratin phase; management decided t put in place a permanent financing structure via a cnventinal crprate term lan, cmmensurate with its risk-return prfile and rganic develpment needs A tailred apprach was required: Early marketing sunding was critical in light f market vlatility, transactin size Multiple jurisdictins (Cratia, Serbia, Slvenia) with legal cnsideratins t address (e.g. crss-guarantees in Serbia) Cmbinatin f 5 and 7 year tenr tranches t meet the needs f the Grup Financial cvenants at grup level, margin grid, repayment schedule based n cash flw generatin, cvenants tailred t grup business requirements 5

6 What are the key takeaways? Client creditwrthiness: Atlantic Grupa is a well-managed crpratin with a clear visin, prven business mdel; it has successfully cmpleted the DK integratin and built a slid financial perfrmance track recrd. Additinality f EBRD by prviding 7 year tenrs and gave cmfrt t mst participants t als participate in the lnger tenr tranche Tailred transactin structure: frm pricing (margin grid) t tranching and repayment schedules, the structure was tailred at AG s cash flw generatin ability and prvide the grup with lng-term financial stability The syndicate: imprtance f bth client huse banks (UniCredit, Raiffeisenbank Internatinal, Erste Bank) but als intrductin f Sberbank as a new lender t the client s bank prtfli Clse c-peratin between prject teams f the EBRD and all ther financing partners during due diligence and apprvals was key t clsing within the desired timeframe Early engagement with client and participants is crucial with large cmplex transactins 6

7 Thank yu. Q&A Cntact Details: Peter Bryde, Deputy Directr and Miljan Zdrale, Senir Banker EBRD HQ, One Exchange Square, EC2A 2JN, Lndn, UK Industry, Cmmerce and Agribusiness Grup