Crédit Agricole CIB was mandated lead arranger and physical bookrunner in the EUR 985 million LBOA leveraged buy-out is the acquisition of all a company's shares financed largely by the borrowed funds. financing backing the public-to-private acquisition of 78.7% of the share capital of Gruppo Coin SpA by BC Partners. The transaction, closed on June 30, 2011 is the largest LBO closed in the Italian market in the first half of 2011.

As a consequence of the transaction, a mandatory tender offer will be launched on all the remaining shares of Gruppo Coin at the price of EUR 6.50 per share, valuing the company’s equity at EUR 930 million (and the enterprise value at EUR 1.3 billion or 6.4x 2010 EBITDAEarnings Before Interest, Tax, Depreciation and Amortisation are the result of the operating cycle. It indicates the profitability of a company. (Source : Vernimmen.com)).

The financing structure features a 3.5x 2010 EBITDA senior debt multiple, with seven years maximum tenor, and includes:

• two term loan facilities in an aggregate amount of EUR 765 million,
• a capex facility of EUR 60 million which will be used to finance new investments and acquisitions,
• a revolving credit facility of EUR 160 million which will be applied towards general corporate and working capital purposes.

Crédit Agricole CIB was mandated in this transaction thanks to its strong relationship with both the seller PAI Partners and the acquirer BC Partners. The mandate was also obtained thanks to its good relationship with Gruppo Coin, dating back from 2005 when the Bank was mandated lead arranger and bookrunner of the LBO financing in favour of PAI Partners.

Cariparma has also been involved in the transaction, demonstrating once again the ability of Crédit Agricole group’s subsidiaries to work in close collaboration for their clients.

Listed on the Italian Stock Exchange since 1999, Gruppo Coin (EUR 1.7 billion building sales, EUR 202.5 million EBITDA in 2010) is the largest retailer in the fragmented Italian apparel market with 5.7% market share. The group has been operating in Italy for almost a century, and benefits from a network of well-located stores in urban areas attracting significant traffic. Stores are operated under the well established OVS and Coin brands with high consumer recognition.