Mayer Brown advises WEPA Group on refinancing
6 January 2010
In the course of the takeover of the Kartogroup S.r.l. and its subsidiaries (see press release Mayer Brown dated December 28, 2009) WEPA Group with seat in Arnsberg/Westphalia rearranged its entire debt financing. In addition to the purchase price financing, all existing loans were repaid or integrated into the new overall financing structure. In particular, the integration of the existing federal and state guaranteed loans formed a challenge. Mayer Brown advised WEPA in the transaction. The transaction was led by Friedrich Merz and Dirk-Peter Flor, both partners with Mayer Brown in Germany.
The new overall financing was provided by a consortium of WestLB AG, Commerzbank Aktiengesellschaft and Unicredit Luxembourg S.A. as well as KfW, which directly participated in the syndicated loans according to the program for large companies. The new overall financing, which is also partly state guaranteed, encompasses a working capital line for the new WEPA Group for the next five years.
The family owned WEPA Group produces tissue products, such as hygiene and toilet paper, kitchen paper and handkerchief, as well as paper towels. With the Kartogroup transaction they will double their annual revenue to ca. 950 million EUR and are, thereby, the fifth largest hygiene paper producer in Europe. WEPA Group employs more than 2,900 employees at ten locations in Europe.
The Mayer Brown team consisted of Friedrich Merz, Dirk-Peter Flor (both lead), Markus Strelow, Dr. Marco Wilhelm; Associates: Dr. Hendrik Otto, Matthias Gippert, Dr. Jan Streer, Dr. Sven Labudda, Serge Levine, Benoit De Monval, Charles-Henri Prioul (all three Paris). Also part of the team were Stefano Cirielli and Francesco Fiore, lawyers at Tonucci & Partners, Mayer Brown’s Italian alliance partner.