Sanitec, senior lenders agree to syndicated debt restructuring deal

By Caroline Salls

Pittsburgh, April 24 - Sanitec Corp. has reached an agreement with a steering committee of its senior lenders on the terms of a proposal to restructure the company's syndicated financial debt under which Sanitec's existing €880 million senior facility and €135 million second-lien facility will be reduced to €300 million, according to a company news release.

Sanitec said the agreement, which is subject to formal credit committee approval and consent of two-thirds of the company's lenders, is an important step in completing a successful balance sheet restructuring.

The proposal also calls for a new €115 million equity injection by EQT and a new €50 million revolving credit facility from existing senior lenders.

According to the release, the €115 million equity injection would be used primarily to invest in a comprehensive operational restructuring of the business.

In return for reducing their debt in the company, the lenders will receive a stake in Sanitec's equity.

"I am delighted that we have reached agreement with the senior lender steering committee on the terms of a financial restructuring for Sanitec," president and chief executive officer Bengt Pihl said in the release.

"Sanitec remains committed to delivering first class product to its customers and for Sanitec's customers, employees and trade suppliers, it is business as usual."

Sanitec is a Helsinki, Finland-based manufacturer and marketer of bathroom accessories and equipment.

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