(Alliance News) - Scapa Group PLC said Wednesday that Schweitzer-Mauduit International Inc has amended its existing credit agreement to add a new USD350 million term loan B facility with a seven-year maturity.
Schweitzer-Mauduit started the syndication of the facility, which is expected to be completed by February 23.
Last Wednesday SWM announced its had agreed terms for a cash offer for Scapa that values the firm at around GBP402.9 million.
Schweitzer-Mauduit is a product engineering and manufacturing company with its global headquarters in Alpharetta, in the US state of Georgia. Its AMS Holdco 2 Ltd subsidiary will offer 210 pence per share for Ashton-under-Lyne, England-based healthcare and industrial firm Scapa.
The price per share represents a 59% premium to Scapa's 132.5p per share six-month volume weighted average price the previous day before the offer.
Shares in Scapa were down 0.5% at 221.00 pence in London on Wednesday morning.
The deal values Scapa's entire share capital at around GBP402.9 million and represents an enterprise value to earnings before interest, tax, depreciation, and amortisation multiple of 11.3 times on a reported basis for the financial year ended March 31, 2020.
In its 2020 financial year, Scapa made a GBP51.0 million pretax loss on revenue of GBP320.6 million due to exceptional charges.
Scapa's directors intend to recommend unanimously that the company's shareholders vote in favour of the buy and have irrevocably undertaken to vote in respect of their own beneficial holding totalling 1.2 million shares or a 0.7% stake in Scapa.
Non-binding letters of intends have also been received in respect of 30.0 million Scapa shares, a 16% stake.
By Paul McGowan; paulmcgowan@alliancenews.com
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