Bayside Capital Makes Investment in Desmet Ballestra In Support of Comprehensive Debt Restructuring

  Bayside Capital Makes Investment in Desmet Ballestra In Support of
  Comprehensive Debt Restructuring

Business Wire

LONDON -- April 18, 2012

Bayside Capital (“Bayside”) today announced that it has completed an
investment in Desmet Ballestra. The new-money investment forms part of a
comprehensive debt restructuring aimed at reducing indebtedness and
establishing debt terms consistent with the company’s financial performance.
Desmet Ballestra, headquartered in France, is the world’s leading provider of
process engineering services, plants and equipment for the oil and fat
industries and for the detergents and surfactants industries.

As part of the transaction, Bayside developed a comprehensive debt
restructuring package which included the deferral of senior debt maturities
and the conversion of junior liabilities into equity-like instruments. In
addition, new super-senior credit facilities totaling €28 MM were put in place
to cover liquidity requirements. Private equity sponsor Equistone Partners
Europe and a small group of senior and junior lenders contributed, alongside
Bayside Capital, to the super-senior new-money financing. Bayside had, in 2009
and 2010, accumulated a position in the senior debt of the company.

The transaction demonstrates Bayside’s ability to harness the combined
capabilities of its secondary-market and primary-market platforms to establish
sustainable capital structures for over-levered companies across Europe. The
deal also highlights Bayside Capital’s growing presence in the direct-lending
market. Bayside has, over the past 18 months, executed 4 primary-market
transactions in Europe and 15 such transactions worldwide.

Under the leadership of a new management team, Desmet Ballestra’s financial
performance has recovered substantially. EBITDA nearly doubled from 2010 to
2011, driven by a sharp increase in the order book and the benefits of an
operational turnaround.

Lionel Laurant, Managing Director at Bayside Capital, commented: “We are very
excited to back Desmet Ballestra in this crucial phase of its development.
Additional fresh capital, combined with the establishment of a sounder capital
structure, will enable Desmet’s first-class management team to harness the
company’s unmatched capabilities as it reaps the benefits from a growing order
book.”

About Bayside Capital

Bayside Capital, an affiliate of H.I.G. Capital, is an investment firm with
more than €3.3 billion under management. Focused on middle-market companies,
Bayside Capital invests across several segments of the primary and secondary
debt capital markets with an emphasis on long-term returns. With eleven
offices throughout the U.S. and Europe and over 225 investment professionals
to draw upon, Bayside has the experience, resources, and flexibility required
to provide capital solutions quickly, and the strategic and operational
expertise to help support its investments.

Bayside Capital is active across a wide spectrum of industries, including
business services, manufacturing, healthcare, retail, food/agriculture, and
specialty finance. With the ability to invest in all parts of the capital
structure, Bayside is able to develop creative financing solutions and
consummate transactions on an expedited basis.

As part of its direct-lending activities, Bayside Capital provides primary
debt financing to performing middle-market companies in the United States and
Europe. Bayside Capital has a broad investment mandate, under which it is able
to provide senior debt, second lien, uni-tranche, mezzanine, and subordinated
debt in support of refinancings, growth capital, acquisitions, and balance
sheet recapitalizations. Credit facilities typically range from €15 to €100
million for companies with revenues of €50 million or more.

Bayside Capital is the credit affiliate of H.I.G. Capital, a leading global
private investment firm with more than €7.5 billion of equity capital under
management. Since its founding in 1993, H.I.G. Capital has invested in more
than 200 companies worldwide and has developed an impressive track record for
creating value for its partners and investors. For more information, please
refer to the Bayside Capital website atwww.bayside.com.

Contact:

Bayside Capital
Lionel Laurant, T: +44 (0) 207 318 5700
Managing Director
F: +44 (0) 207 318 5749
llaurant@bayside.com
www.bayside.com
 
Press spacebar to pause and continue. Press esc to stop.