Kohlberg Kravis Roberts subsidiary KKR Asset Management has agreed to provide Uralita and its subsidiary URSA Insulation with a seven-year, €320 million credit facility to repay its current lenders.
KKR Asset Management completed the investment through the firm’s special situations funds, according to a statement.
In addition to allowing Uralita to repay banks and noteholders, the €320 million facility will also allow the Spanish building materials company to continue to develop its pan-European business, according to a statement from KKR. Lazard acted as a financial advisor to KKR on the deal.
Uralita’s insulation business, URSA, manufactures thermal and acoustic insulation for buildings across Europe. URSA maintains factories in Belgium, France, Germany, Italy, Poland, Russia, Slovenia, Spain and Turkey.
“We see very interesting opportunities in Spain, which has a lot of very high-quality, international market-focused companies,” KKR global co-head of special situations Nat Zilkha told Private Debt Investor. “Uralita is a classic example of a good company with bad balance sheet. While we have confidence in the long-term future of Spain, it's very early to call it has reached the bottom. However, there are a lot of great companies there which will prosper even in this tough environment.”
“With this investment, we combined the strength of our European-based special situation team, the local knowledge of our Spanish KKR team, and the deep sector expertise of the firm, resulting in us being able to act on a great opportunity to work with a great company,” said Mubashir Mukadam, the head of KKR’s European special situations business in a statement.
Mukadam joined KKR’s London office in 2011. Prior to KKR, Mukadam had specialised in distressed and event-driven investing as a managing director at York Capital Management. This is the firm's sixth rescue / special situations deal in Europe.