Lenders agree on Bavaria restructuring
By IBI Magazine
German boatbuilder Bavaria Yachtbau GmbH has announced that lenders Anchorage Advisors LLC and Oaktree Capital Management have signed a binding agreement to restructure the company's balance sheet.
The restructuring will involve a capital injection of €55m in cash and the write-down of over 90 per cent of the senior and junior debt tranches.
Anchorage and Oaktree collectively control approximately 95 per cent of Bavaria's €960m debt facilities.
The statement issued by Bavaria reads as follows:
"Anchorage and Oaktree have been working collaboratively with [private equity firm] Bain Capital and look forward to Bain's continued involvement upon consummation of the agreement, which is subject to regulatory and anti-trust clearance.
"Both Anchorage and Oaktree have been lenders to Bavaria for over a year and support the strategic plan developed by the management team and Bain. Upon completion of the transaction, Bavaria's new financial strength will enable the company to accelerate new product launches, and expand and strengthen its channels of distribution while continuing to support its existing customers and distributors.
"Andrés Cárdenas, CEO of Bavaria, comments: "This announcement is a welcome development for Bavaria. We are excited by the new products being launched this boat show season and our new financial strength provides stability for our customers and business partners. Over the past year, our management team has developed a close relationship with Anchorage and Oaktree and I believe that our partnership will now enable us to invest for long-term growth."
"Investment bank Lazard and lawfirm Latham & Watkins LLP advised Bavaria in the transaction."
Last week IBI News reported that private equity firm Bain was expected to hand Bavaria over to investors Anchorage and Oaktree.
Bavaria employs around 550 people and builds sail and motoryachts from 8m-17m (27ft-55ft) at its shipyard in Giebelstadt, Germany. To date Bavaria has built over 30,000 yachts, exporting 85 per cent of its production.
(5 October 2009)
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