Investcorp loads revolver

22 December 2006
Investcorp, the Bahrain-based investment bank, has closed a $500 million revolving loan with a group of 30 banks. The five-year facility was launched at $300 million but received offers in excess of $850 million leading to the increase in size. JP Morgan and Dresdner Kleinwort Wasserstein were the joint bookrunners.

The deal is the second recent fund-raising exercise by Investcorp. It raised $420 million of new capital through an issue of global depositary receipts on the London Stock Exchange in early December (MEED 8:12:06).

'The syndicated loan establishes a new source of accessible funding for the balance sheet and will be used to fund underwriting of multiple and concurrent acquisitions,' said Investcorp chief operating officer Gary Long on 17 December.

Two days later, Investcorp announced two acquisitions. The bank agreed to buy Germany's Armacell International from private equity firms Gilde Buyout Fund and CVC Capital Partners. The terms of the deal were not disclosed. Armacell is a producer of flexible insulation and is expected to generate sales of Eur 325 million ($427.8 million) this year. Investcorp has also acquired US transport and logistics company Greatwide.

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