Financial survival mode.

Lpc charterhouse backs cooper buy with 400mln euro leveraged loan

´╗┐Oct 15 Banks have arranged around 400 million euros ($456.16 million) of leveraged loans to back British private equity firm Charterhouse's acquisition of French pharmaceuticals company Cooper, banking sources said on Thursday. Charterhouse beat rival private equity firms to buy Cooper, which was sold by French investment firm Caravelle for as much as 700 million euros.

Nomura and Morgan Stanley are physical bookrunners on the debt financing and Deutsche Bank and Royal Bank of Scotland are expected to be bookrunners. The financing is expected to syndicate to institutional investors in November, the sources said.

The financing is expected to total just over six times Cooper's earnings before interest, taxes, depreciation and amortisation (EBITDA) of approximately 65 million euros.

Cooper, an over-the-counter pharmaceuticals company, had revenues of 198.7 million euros in 2013, according to its website. Charterhouse is also selling UK medical firm Tunstall, which provides care services and assisted living for elderly and disabled people at home. ($1 = 0.8769 euros)

Lpc european investors play hardball on risky leveraged loans

´╗┐Investors in Europe's leveraged loan market are taking an increasingly hardline approach towards more tricky credits amid volatile macro conditions and a bulging pipeline of new deals. Loans have been getting progressively aggressive throughout 2015 as borrowers pushed leveraged levels, pricing and structures amid a lack of deals and a number of repayments that left cash-rich investors and warehousing CLOs desperate to deploy capital. While investors have tried to maintain a certain level of discipline throughout the year, this has stepped up in light of a growing nervousness around Greece. With the pipeline of new deals building, investors are becoming more selective on which credits to invest in and at what terms. A repricing for Spain's Ufinet Telecom, formerly known as GNFT, was pulled this week due to current market conditions. The company had been looking to amend its 295 million euro ($329.60 million) term loan B that was agreed in July 2014 to back Cinven's acquisition of Spanish utility Gas Natural's telecommunications affiliate Gas Natural Fenosa Telecomunicaciones. Barclays and UBS were bookrunners on the transaction, which was aiming to reprice to 425bp, representing a 50bp margin reduction across the grid - but it failed to gather enough support from investors.

"Ufinet was punchy. The market is not as strong as it was so the weaker deals are getting pushed back," a senior leveraged loan banker said. It is the second loan deal to be pulled in as many weeks after IK Investment Partners' German industrial weighing specialist Schenck Process pulled a 605 million euro leveraged loan, halting plans to refinance existing debt and pay a dividend to owners, after some investors deemed it as too aggressive. Other deals in the market are also experiencing pushback such as a repricing for Austrian packaging group Constantia Flexibles, which is guided at 300bp-325bp with a 75bp floor, down from existing pricing of 375bp with a one percent floor. Some investors want a one percent floor to remain in place and think the margin proposed is too low.

SWEETENING THE DEAL Borrowers attracted to a cheaper, more flexible loan market in preference to the bond market have been making adjustments in order to make their loans more enticing to investors.

A leveraged loan backing CVC's buyout of German perfume and cosmetics retailer Douglas was increased by 420 million euros to 1.22 billion euros and the bonds were reduced by the same amount. Pricing was increased on the loan to 500bp from 450bp and a 1 percent floor was added to encourage investors to join the deal. Although the book was covered on the 800 million euro loan at 450bp, pricing was increased in order to raise the extra amount."A 50bp margin increase and a one percent floor on Douglas is a hell of an increase," a second loan banker said. Investors and bankers will be watching closely to see whether other deals will clear the market on original terms or will need to be adjusted. All eyes will be on buyout loans for Motor Fuel Group and German-based wheelchair manufacturer Sunrise Medical which have covenant-lite loans term loans totalling around 300 million pounds ($471.45 million) and 315 million euros, respectively. ($1 = 0.8950 euros) ($1 = 0.6363 pounds)