Ropes & Gray Acts for Investors in Almatis Restructuring

In The News
October 4, 2010

Ropes & Gray has acted for Sankaty Advisors and GoldenTree Asset Management, as Euro note purchasers in connection with the issuance of €110 million eight-year senior secured notes that will refinance the debts of Almatis, the world's largest specialty alumina products producer, resulting in the company's exit from bankruptcy.

In addition to the €110 million eight-year senior secured notes, the debt financing was made up of US$410 million eight-year senior secured notes and a €50 million five-year revolving credit facility. The dollar note funding was provided by GSO Capital Partners LLP as lead investor, together with a consortium including JP Morgan and Bank of America Merrill in the revolving credit facility. The refinancing also included a US$100 million equity contribution from Dubai International Capital, in exchange for its retention of a 60 percent stake in Almatis.

"The issuance of high yield debt represents a growing trend in the market where high yield is being used to refinance existing senior debt," Mr. Bloom said. "Our recent expansion in this area at both partner and associate level is a direct result of continuing client demand." Finance partner Jane Rogers recently relocated from the firm's Boston office to London

The transaction is yet another high-profile mandate involving the firm's London office that opened its City base in January 2010. It follows three high yield issuances for Liberty Global and its group of companies; representation of the Second Lien and Mezzanine Lenders in the negotiation with Carlyle (as sponsor) of the financial restructuring of the French/US group, Zodiac Marine & Pool Group; acting for a private equity consortium consisting of Berkshire Partners, Bain Capital and Advent International in the US$1.1 billion leveraged buyout of SkillSoft; and acting for TPG in a co-investment with Goldman Sachs for the €1.2 billion secondary buyout acquisition of Ontex N.V.

Read the press release here.