Credit crunch hits owners of Bavaria Yachtbau
By IBI Magazine
Arrangers Goldman Sachs and Dresdner Kleinwort have increased their efforts to syndicate the covenant lite leveraged buy out debt of German yacht builder Bavaria Yachtbau, according to financial newswire Debtwire Intelligence.
One-on-one meetings for parties interested in taking on Bavaria's debt will take place this week. Significant discounts to par are said to be under discussion.
The total package amounts to around €1 billion. Underwriters negotiated with sponsor Bain Capital at the end of 2007 to amend the pre-crunch financing.
Private equity firm Bain Capital along with Bavaria's managing director Winfried Hermann acquired the company in July 2007. No purchase price was officially disclosed, but industry reports cited a total consideration in excess of €1 billion.
Bavaria's sales for the year ending July 31, 2006 were €274.1 million, with reported profits of €75.5 million. Sales are likely to have grown in the subsequent year, but since the sale of the company revenues will have probably declined due to tougher global market conditions.
Goldman Sachs first quarter results announced this morning revealed that the US's largest investment bank's earnings fell by half after steep losses on corporate loans and other assets.
(18 March 2008)
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