Marlink's €622m Dividend Recapitalization Loan Pulled

Maritime Activity Reports, Inc.

July 18, 2018

A €622m-equivalent dividend recapitalization and refinancing loan for Norwegian satellite navigation group Marlink has been withdrawn from the market, sources familiar with the situation said.

The leveraged loan for Marlink, which is owed by private equity firm Apax Partners, has run into the turbulence that has hit the European market in the last month, as investors call for better terms and conditions.

A combination of increased dealflow and poor secondary trading levels on loans signed earlier this year is helping investors to push for higher pricing and stronger documentation.

"Several deals have struggled recently. We've seen terms changing and ultimately the market was simply not in a receptive place for this one (Marlink)," a person familiar with the situation said.

The financing originally comprised €280m and US$190m seven-year covenant-lite term loan B tranches, a US$100m eight-year covenant-lite second-lien facility and a €92m 6.5-year revolving credit facility.

The term loans were offered at 425bp-450bp over Euribor/Libor with a 0% floor and 99.5 Original Issue Discount.

JP Morgan was sole physical bookrunner and joint global coordinator alongside BNP Paribas, Credit Agricole, DNB and HSBC.

JP Morgan declined to comment.

Marlink provides satellite navigation and communication to one in three of the world’s vessels, according to its website. Apax Partners France carved the company out of Airbus Group’s satellite communication division in mid 2016.

(Editing by Christopher Mangham)

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