The asset management division of Kohleberg Kravis Roberts & Co LP granted a Eur320 million or US$419 million to Spain's Uralita SA. This had been considered the biggest rescue loan deal in Europe.
The seven year loan with the private equity firm, KKR, will help the Madrid-based construction materials manufacturer to settle existing bank debts and bonds according to a statement the company had distributed. The loan was structured as unitranche financing - a single facility combining senior and junior debt according to the London based co head of KKR Asset Management Special Situations Group, Nat Zilkha.
He explained through a telephone interview, "Banks are not divesting existing distressed assets and as a result their ability to underwrite new debt financing is limited, especially in periphery countries." This is the sixth loan deal in Europe of KKR Mr. Zilkha further added.
"We see very interesting opportunities in Spain, which has a lot of very high-quality, international market-focused companies. Uralita is a classic example of a good company with bad balance sheet," Zilkha disclosed.
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