House of HR, a leading European HR solutions provider, has successfully completed a refinancing of its existing bank debt. The refinancing, made available to its wholly (indirectly) owned Subsidiary The House of Finance NV (Thof), comprises a term loan B borrowed under a new €650 million Senior Facilities Agreement and the issuance of €320 million in aggregate principal amount of 4.375% senior secured notes due 2026 as completed by a tap issue of €50 million additional senior secured notes priced on 31 July 2019.
The new Senior Facilities Agreement consists of a “covenant-lite” Term Loan B of €550 million of principal amount with a seven-year maturity, and a revolving credit facility of a principal amount of up to €100 million. The transaction represents the debut issuance of high yield notes by House of HR, and any company controlled by sponsor Naxicap Partners. Proceeds from the Term Loan B and issuance were used to repay House of HR’s existing €600 million of senior bank debt, finance a shareholder capital reduction, and provide cash for the group’s future growth plans.
J.P. Morgan and ING acted as coordinators, senior mandated lead arrangers and bookrunners, KBC and Société Générale acted as senior mandated lead arrangers, and ING acted as agent under the Senior Facilities Agreement. J.P. Morgan also served as global coordinator and sole physical bookrunner for the senior secured notes, with ING acting as joint bookrunner and KBC and Société Générale acting as co-managers.
Latham & Watkins represented J.P. Morgan, ING, KBC and Société Générale in the transaction with a team led by Paris finance partner Lionel Dechmann with associates Olivier Stefanelli, Virginie Terzic, and Matthieu Herviaux. Paris partner Thomas Margenet-Baudry and counsel Michael Ettannani, and London associate Phil Houten, advised on capital markets matters.