Labeyrie Fine Foods S.A.S., Issuance EUR275 million of Senior Secured Notes

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Labeyrie Fine Foods S.A.S., has issued EUR275 million of senior secured notes due 2021, priced at par with a 5.625 per cent coupon.  Fitch Ratings has assigned a Long-term issuer Default Rating (IDR) of ‘B(EXP)’ with Stable Outlook.  Fitch has assigned LFF’s proposed EUR275m senior secured notes a ‘B+(EXP)’/’RR3’ expected rating.
 
The expected ratings reflect LFF’s high business risk profile, somewhat compensated by a relatively conservative leverage structure and good free cash flow (FCF) generation capacity while factoring in the proven resilience of its sales and profitability as well as its leading brands position.
 
Founded in 1946 in St-Vincent-de-Tyrosse, the French packaged food company produces and sells smoked salmon and trout, shrimps, foie gras, duck products, caviar and fish eggs, and sea terrines through its shops in Paris, France; and Southwest of France.
 
The company was backed by LBO France, which acquired a stake in Labeyrie in January 2012.  The proceeds, combined with cash on hand, will be used to repay in full the company’s financing arrangements – EUR160.6 m of term loans, EUR35.2 m of senior mezzanine bonds and EUR28.5m of junior mezzanine bonds.  They will also be used to repay subordinated shareholder convertible bonds (EUR52.1m and EUR7.4m), and to redeem senior mezzanine warrants (EUR1.1m).  The firm will also enter into a EUR80m three-year factoring facility agreement and a EUR35m 6.5-year revolving credit facility.  As a result of this refinancing, Labeyrie has moved to an all-bond debt structure.
 
DragonKnight Advisors assisted in the transaction, acting as financial advisor to the issuer and the guarantors.  Led by founder and managing partner Stephan Gaude, DragonKnight are committed to providing high-quality individual advice and tailored service all the way through the drafting of contracts and agreements and negotiations with investors. 
 
Tresoptim, an expert in factoring solutions and trade receivables financing, advised Labeyrie in the deal, with owners of the firm, Luc Merlin and Sylvain Poissonnier, heading the team.

Key Parties on the Transaction

Stephan Gaude

Founder and Managing Partner of DragonKnight:
 
“DragonKnight was the perfect interface between the advisors of the banks for high yield note, the Super Senior Revolving Credit Facility, the management team and the shareholders of the issuer.  DragonKnight contributed to getting all parties aligned and insured they reached a position beneficial to the issuer.”
 
Stephan can be contacted by phone on +44 (0)207 036 9440 or alternatively via email at Stephan.gaude@dragonknightadvisors.com
 
http://www.dragonknightadvisors.com/