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BAKER & MCKENZIE ADVISE EQT ON €969 MILLION DEBT RESTRUCTURE
London, 9 July 2009 - Baker & McKenzie has advised leading private equity firm EQT on the restructuring of €969 million of debt of Sanitec. The restructuring closed on 8 July.
Sanitec is the largest bathroom supplier in Europe and designs, manufactures and markets bathroom ceramics and other products.
The restructure involves Sanitec's €839 senior debt being reduced to €300 million, and €130 million in second lien debt being wiped out completely, in exchange for lenders receiving a 22.5% stake in the restructured entity. Additionally, EQT will inject €115 million of new funds into Sanitec, which will be used to invest in a comprehensive operational restructure of the business.
Commenting on the transaction, Bernard Sharp, Banking partner at Baker & McKenzie in London, said: ''This was a complex debt restructuring, covering 18 jurisdictions, which we have been working on intensively since late last year. It used an innovative structure, involving EQT buying not only the shares in Sanitec, but also the bank loans, as part of an enforcement process.''
Patrick De Muynck, Senior Partner at EQT Partners, commented, "We are very pleased to have finished this landmark restructuring for Sanitec, which will now put the Sanitec group of companies on a solid financial foundation going forward. The process has been difficult, and drawn out, and there were times we weren't sure we would get there. We faced formidable technical challenges in putting this deal together and value enormously the innovative structuring and execution advice we received from Baker & McKenzie."
The Baker & McKenzie team was led by Bernard Sharp in London, assisted by partners Tim Gee, Simon Hughes and Frances Okosi. Advice was also provided by 14 other Baker & McKenzie offices.
The Senior Steering Committee was represented by Clifford Chance, and White & Case advised the Company and its directors.
For further details please contact:
Bernard Sharp, Banking partner (London) on
+44 (0)20 7919 1162 or Bernard.sharp@bakernet.com
Daniela Conte, Marketing & PR Manager (London) on
+44 (0)20 7919 1526 or Daniela.conte@bakernet.com