CVC supplies unitranche facility in Dutch acquisition

The unitranche loan contributes to Bregal Freshstream’s acquisition of a majority stake in Dutch petrochemical company Verwater.

CVC Credit Partners, the credit investment specialist arm of CVC Capital Partners, has backed the acquisition of a Dutch petrochemical business with a unitranche facility.

Private equity group Bregal Freshstream acquired a majority stake in Verwater, a petrochemical storage company headquartered in Rotterdam from Infestos. Infestos initially purchased a stake in the company in 2014 and remains a co-investor.

Both CVC and a representative from Bregal Freshstream declined to disclose the size of the unitranche loan.

It is the 17th transaction completed under the CVC Credit Partners’ European Private Debt strategy. The firm looks at deals in Western Europe and lends to both sponsored and non-sponsored borrowers, although across the portfolio less than 20 percent of these are non-sponsored deals. The smallest transaction completed in the fund is €10 million and the largest is €100 million.

Chris Fowler, managing director at CVC Credit Partners, said that the “the unitranche benefits from being a ‘one-stop shop’ financing, enabling the borrower to negotiate with a single party instead of arranging a bank club. As this was an off-market transaction, speed, certainty and flexibility were the key criteria for selecting a financing partner”.

The deal follows CVC’s acquisition of Northport Capital last month. Earlier in the summer, the firm closed its global special situations fund after raising €650 million. The fund targets global investments, but the firm stated that the majority of its transactions will be completed in Europe.

Pascal Keutgens, partner at Bregal Freshstream, said that there is “great potential” to expand the company internationally and it is “a highly prized” company due to its deep knowledge of the “regulatory backdrop”. Filip De Wilde, chief executive of Verwater, said that the private equity firm’s investment will assist in the amount of services the company offers to its customers.

CVC’s credit platform was established in 2005 and manages performing credit, private lending and special situations strategies. The firm has offices in the UK and US and according to recent figures the firm had $14.9 billion of assets under management in the second quarter.