Herter & Co. advised KAP AG (“KAP”) on the early refinancing of its existing credit lines. In the process, the financing of the listed industrial holding company was increased from EUR 113 million to EUR 125 million, thus securing the financial flexibility to maintain its acquisitive investment strategy. Despite the current global uncertainties, driven by the ongoing supply chain disruption and effects of the Russia-Ukraine war, an oversubscription was achieved.
In addition to an amortizing loan and a revolving facility, a further credit line with a volume of EUR 50 million was made available for acquisitions, which is subject to the approval of the bank consortium. The term of the individual financing components is four years, with two extension options agreed for one year each – in addition, interest conditions remained fairly unchanged in comparison to the expiring agreement.
Marten Julius, Chief Financial Officer of KAP: “The successful closing of our new syndicated loan is an important milestone for the optimization and expansion of our financing structure. We are glad that we were accompanied by Herter & Co. along the entire process. The loan gives us additional security, especially in the market characterized by global uncertainties, and at the same time sufficient financial headroom to be able to react adequately to possible further crisis effects and to take advantage of anti-cyclical M&A opportunities in the market.”
KAP is a listed industrial holding company in the upper midmarket segment that seizes attractive growth opportunities in its respective niche markets. KAP focuses on four different segments: engineered products, flexible films, surface technologies and precision components. Through targeted acquisitions, the company strengthens its existing business segments or exploits new market opportunities. The Group currently has 28 locations and employs c.2,600 people in twelve countries. The shares of KAP AG are listed on the Regulated Market of the Frankfurt Stock Exchange (Prime Standard, ISIN DE0006208408).
Herter & Co. acted as Sole Debt Advisor to KAP.