As anticipated by Panta Capital in its 18-Jun-09 analysis, Wessanen announced today it had amended its EUR 250m credit facility, increasing its net debt to consolidated EBITDAE to 4x in 2009 and to 3.5x in the first half of 2010. Under the original facility, net debt was allowed to exceed 3x consolidated EBITDAE for a limited period only and not allowed to exceed 3.5x. At 01-Mar-09, Wessanen reported a net debt to EBITDAE ratio of 3.2x.
Although we feel that this might put increased time pressure on Wessanen to generate a sale of its US business before 30-Jun-10, we believe that this news removes the debt covenant breach risk before the actual US sale. With Wessanen rumoured to have between 10 to 15 interested parties for its US distribution business, we think it is on track to a successful exit from its US operations.
Panta Capital's Idea Sample Blog is designed to share a limited sample of what Panta Capital considers as attractive event driven and special situation investment ideas & insights. Please contact us to gain access to the PANTA CLIENT SECTION, where you will gain full access to all attractive European and North-American situations and analyses.
Panta Capital's Idea Sample Blog is designed to share a limited sample of what Panta Capital considers as attractive event driven and special situation investment ideas & insights. Please contact us to gain access to the PANTA CLIENT SECTION, where you will gain full access to all attractive European and North-American situations and analyses.
