Direct lenders have clubbed together to provide €500 million of PIK notes to fund French enterprise management software Cegid’s dividend recap, sources told Reorg. The debt instrument was upsized from the initially targeted €400 million, as
reported.
The coupon on the facility is around 7.5%, the sources added.
GIC and Goldman Sachs Asset Management Private Credit led the club, having each provided €125 million of the facility, alongside nine other direct lenders including CDPQ, CVC, KKR and Park Square among others.
Cegid joins a relatively small group of issuers that have come to the primary market this year to fund a dividend recap, as
reported.
In addition to the PIK notes, Cegid's recap debt package comprises a €700 million non-fungible term loan B add-on, which
priced at 99.5 with a coupon of Euribor+375 bps.
Cegid is majority owned by Silver Lake, with Oakley Capital, AltaOne and KKR as minority investors.
CVC, CDPQ, Goldman, Park Square declined to comment. KKR and Silverlake did not return a request for comment.
– Maryna Irkliyenko, Oscar Laurikka