Bregal Partners’ Scott Perekslis must really like seafood. The private equity firm’s managing partner and co-founder has been involved with American Seafoods in various capacities for almost 17 years, and now that his firm has taken an equity stake in it, he expects to hold on to the company for some time still – up to 10 years – he tells PDI.
Perekslis first started talking to American Seafoods management in 1998, when the company was looking for an exit from its Norwegian parent. Perekslis eventually bought the company in January 2000, when he was at Centre Partners, where he had been a senior partner since 1991. He went on to found Bregal in 2012.
One private debt executive offered a first lien piece says he turned it down on the basis of low pricing and high leverage.
Perekslis’ re-entry into the company is still fresh, so future plans are still fluid. Bregal Partners’ normal hold period is about five years, though he says he can envision holding onto this stake for as much as seven to 10 years.
Though for Perekslis the reduction and restructuring of the company’s debt is the main factor in sorting out the future of the firm. “The overall reduction in indebtedness is pretty meaningful with this transaction and it’s not just what we’ve seen at the operating company and its immediate parent, but there are other direct and indirect parents that all had leverage and all of that got cleaned up,” he says.
By the numbers
American Seafoods Group outstanding
debt before restructuring
Haircut applied to around $200m of 15 percent PIK notes
Ares Capital-led credit facility
Libor plus 900bps
Pricing on the $200m second lien
Lenders in the new syndicate
New first lien term loan
Tenor of the first lien term loan
Leverage before PIK haircut