CVC eyes dividend recap of Ahlsell

Buyout firm CVC is seeking a dividend payment alongside and amend-and-extend of existing debt used to back its acquisition of Sweden-based tool distributor Ahlsell.

Private equity firm CVC Capital is seeking to raise €270 million in new loans to refinance Swedish tool distributor Ahlsell, in order to make a shareholder dividend payment, according to Reuters.

The firm is also seeking to amend and extend existing debt, banking sources said.

CVC is reportedly  looking at a term loan A (TLA) for the dividend payment and a two year extension on existing debt, as well as a reduction on interest margins by 50 basis points.

A term loan B (TLB) will be extended to mature in 2021 and will pay 425 bps over Euribor while a TLA, revolver (RCF) and capital expenditure facility will be extended to mature in 2020 and pay 400 bps over Euribor, Reuters added.

Commitments are due May 21 and lenders will receive a 25 bps commitment fee.

A spokesperson for CVC declined to comment on the reports. 

CVC bought Ahlsell in 2012 for €1.8 billion backed by €1.1 billion of leveraged loans.

The firm is understood to have repriced the loans a year later in March 2013, knocking 75 bps off a €510 million TLB to 475 bps and 50 bps off its TLA and RCF to 450 bps.

Ahlsell operates throughout the Nordic countries, the Baltic States and Russia, distributing installation products, tools and machinery.