HIG Whitehorse signs two Dutch deals

The firm refinanced IGM Resins with a unitranche facility and Suitsupply with a PIK note for its management buyout.

Chemical-maker and Arsenal Capital portfolio company IGM Resins has signed a five-and-a-half-year €25 million unitranche loan with sole arranger HIG Whitehorse, the credit arm of private equity firm HIG Capital. 

The lender teamed up with the company’s asset-based lender, Deutsche Bank, to execute an intercreditor agreement for the financing with the German lender providing secured credit lines against IGM’s global assets and HIG Whitehorse extending senior secured term debt, PDI understands. 

The new facility refinances an equity capital bridge that was put in place to fund an acquisition in Italy. IGM Resins is headquartered in Waalwijk in the Netherlands but has operations across Europe, the US, China and Brazil. 

Altium Capital was the debt advisor working with IGM on the financing.

HIG Whitehorse worked on the deal for almost four months before execution. The lender was comfortable with the complex global credit work the deal required and is a fan of the chemical sector, a source close to the deal told PDI

IGM Resins manufactures the chemical components used in the curing of ultra-violet coatings, inks and adhesives. Their products are used across a number of businesses including food packaging, wood coatings and coatings for electronics. The manufacturer is majority-controlled by Arsenal Capital. 

The lender also recently supported another Dutch borrower. HIG Whitehorse extended a €35 million payment-in-kind note to support Suitsupply’s management buyout of minority shareholders to hand management 100 percent control. The Amsterdam-based menswear retailer produces annual revenues of €150 million and has been growing more than 25 percent a year, the firm said. 

“Suitsupply is a very successful men’s clothing retailer with a unique market position and strong potential for continued growth. We are delighted to provide a customised financing solution to support management to take full ownership of their company. This transaction demonstrates our ability to provide bespoke, flexible and deliverable financing solutions in a timely manner,” said Haseeb Aziz, a managing director at HIG Whitehorse. 

HIG Capital credit unit HIG WhiteHorse makes unitranche, senior and subordinated loans of between €10 million-€75 million to companies with revenues of €40 million or more.