European Capital increases credit facility to €900m

The European affiliate of buyout and mezzanine firm American Capital Strategies has increased its revolving credit facility to €900m, giving the company approximately €1.65bn in firepower.

European Capital, a buyout and mezzanine firm with offices in London and Paris, has increased its multi-currency revolving credit facility from €400 million to €900 million ($514 million to $1.15 billion).
 
Wachovia Securities was the lead arranger and bookrunner on the credit facility, which is denominated in euros, pound sterling and dollar. Wachovia Bank, Bank of Montreal, Citibank, Alpine Securitization, JP Morgan Chase and Chariot Funding provided commitments for the credit facility.
 
Simon Henderson, managing director in the London office of European Capital, told PEO earlier this year that the firm planned to raise its credit facility at least to match its inaugural fund, which raised €750 million of equity commitments in October 2005.
 
“American Capital’s longstanding relationships with financial institutions and capital markets expertise have provided European Capital with financial resources typically not available to new funds or managers,” said John Hooker, vice president debt capital markets, American Capital.
 
Approximately €111 million of the credit facility was borrowed earlier this year to pay intercompany debts to American Capital connected with the opening of the London and Paris offices.
 
An undisclosed amount of the credit facility was also used in August 2006 for the London office’s first two buyouts: the €123 million purchase of Avery Weigh-Tronix, a scales maker, and Farrow & Ball, a decorative pains and wallpaper company acquired for €126 million.
 
European Capital has invested approximately €901 million in 29 companies since its formation in August 2005, the majority of which have been mezzanine investments arranged from the firm’s Paris office.