Deal: Hagemeyer's recapitalization
Size: e1.5 billion
Lead arranger and co-ordinator: ABN Amro
Date: February 5 2004
You don't have to be a household name like Marconi or Eurotunnel to go through a fiendishly complex financial restructuring.
For an organisation with more than 20,000 employees in over 60 countries, Dutch B2B distribution services group Hagemeyer has a relatively low profile. It hasn't tried to establish a global brand across its local operations. Its eight different UK businesses, for example, all trade under their own different names.
When one of the UK operations, Newey & Eyre, got into trouble last year, it triggered a nine-month recapitalization process that culminated in a e460 million rights issue, a e150 million subordinated convertible bond, and e905 million of new credit facilities.
Newey & Eyre began losing customers when new IT and logistics systems upset its delivery business. In May 2003, Hagemeyer told lenders...
