Background

  • Founded in 1985 in Murcia (Spain) Iberchem is a global manufacturer and distributor of Fragrance and Flavours, F&F, for the non-food and food and beverage consumer markets
  • The Company’s global footprint, with 11 state-of-the-art manufacturing facilities, of which 9 outside Spain, and 4 commercial offices in strategic locations, have resulted in sales in more than 100 countries (90% of 2014A sales outside Spain) and strong exposure to high growth Emerging Markets (84% of 2014A sales)

Our role

  • DC Advisory was mandated as sole financial advisor of Iberchem to run a process to raise facilities
  • The purpose of the debt was to refinance its current debt facilities, pay a distribution to its shareholders and optimise the financial structure
  • A highly competitive process was undertaken, with 2 different alternatives (Senior Debt and Unitranche) to deliver the best solution for the Company and its shareholders
  • Based on a deep understanding of the business and the Company / Shareholders’ objectives, and the alternative structures, our role included:
    • assisting on financial modelling, preparation of marketing materials and due diligences (financial, legal and commercial) coordination
    • managing the dual track process with senior debt and unitranche providers
    • Term Sheet negotiation with incumbent and potential new lenders
    • SFA negotiation with final lenders

Outcome

  • By the end of June 2015, two months after launching the process, Iberchem and Natixis signed the Underwriting Contract. The syndication launched by Natixis exclusively took one month thanks to the contacts that DC Advisory had previously made
  • After that period, the pool of banks that decided to enter into the refinancing was composed by four Spanish financial entities and 3 international
  • Until Natixis underwrote the recap, Montalban / DC negotiated with institutional funds to improve the financing terms managing the dual track process
  • The final debt structure met all the goals initially identified by the Company
    • optimises the financial structure of the Company;
    • allows the shareholders to pay a distribution 
    • minimises the financing cost; and
    • maximises tenor