Muzinich invests €10m in expanding Italian waste firm

The debt is structured as a seven-year senior secured bond.

Muzinich Italian Private Debt Fund has provided €10 million in bond financing for Eco Eridania SpA, a waste management company based in Genoa, according to a statement from the US-headquartered asset manager. The deal is the fund’s second Italian investment.

The financing is a seven-year senior secured debt facility with a three-year grace period before amortisation payments kick-in, said a source close to the situation.

The fund may make further investments in the company, continued the statement, adding that the debt was made available alongside further investment by shareholders Jersey-based Xenon Private Equity and Italian family holding company Roccaforte to support the company’s organic and acquisition-driven growth strategy.

Eco Eridania specialises in managing hazardous, medical and industrial waste. The company’s turnover has reached over €70 million this year, according to the statement.

Linklaters provided legal advice while Ernst & Young advised on accounting and tax issues relating to the deal.

Muzinich & Company reached a first close of €156 million on its Italian fund in April. The corporate credit specialist is headquartered in New York and has offices in London, Paris, Cologne, Zurich and Milan.