Banks HVB and ING have been mandated to arrange a 265 million Euro syndicated loan for the Messer Group.

The group also intends to borrow the equivalent of EUR200 million via a private placement in the US insurance market.

Proceeds of both facilities will be used to refinance Messer Group's existing EUR525 million senior secured credit facilities from July 2004, put in place to fund the buyout of the company by sponsors Allianz Capital Partners and Goldman Sachs Private Equity.

That debt was structured as a standard LBO carrying a net debt to EBITDA ratio of 2.89 times. Banks were asked to commit on a single ticket of EUR40 million for an upfront fee of 90 bps.

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Messer Group