Lovells and CC advise on £1bn senior debt restructuring deal
Lovells and Clifford Chance (CC) have advised on the £1bn restructuring of catering group Select Service Partners (SSP). SSP, which operates catering and retail units primarily in airports and railway stations in more than 25 countries, was acquired by buyout house EQT in 2006 for an undisclosed sum and subsequently refinanced in 2007 in a deal worth around £1.2bn.
January 19, 2010 at 09:12 PM
2 minute read
City duo take lead roles on catering group's debt restructuring
Lovells and Clifford Chance (CC) have advised on the £1bn restructuring of catering group Select Service Partners (SSP).
SSP, which operates catering and retail units primarily in airports and railway stations in more than 25 countries, was acquired by buyout house EQT in 2006 for an undisclosed sum and subsequently refinanced in 2007 in a deal worth around £1.2bn.
The restructuring has seen Lovells advising the senior lenders through a team led by London restructuring partner Stephen Foster (pictured) and leveraged finance partner Penny Angell. The firm was appointed by a co-ordinating committee comprising Alcentra, Babson Capital, Commerzbank, Lloyds TSB, M&G Investments and Mizuho Corporate Bank.
CC, meanwhile, advised regular client EQT on the restructuring, with banking and finance partner Taner Hassan and insolvency partners Philip Hertz and Alan Inglis leading the magic circle firm's team. EQT is set to invest some £100m in new money, with the equity injection allowing the write-off of £100m in mezzanine debt.
SSP started discussions over its restructuring in March 2009 after the business was impacted by the economic downturn in late 2008. The senior debt restructuring was made through 11 schemes of arrangement, approved by the High Court on 15 December.
Lovells initially advised Dresdner Kleinwort Wasserstein, Mizuho Corporate Bank and Morgan Stanley as the lead arrangers backing EQT's acquisition of SSP from Compass Group in 2006. That deal saw Linklaters advising EQT on corporate and equity aspects, with CC advising on finance aspects of the transaction that featured a structured debt package including £930m of senior, second tier and mezzanine facilities as well as a £95m payment in kind note.
Foster told Legal Week: "The senior debt was very widely held by a number of different participants, including traditional banks and hedge funds. It became apparent early on that it would not be possible to structure a fully consensual senior deal, which is why the restructuring was implemented by a scheme of arrangement. What is very important is that the new money required by the group will be provided."
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