H.I.G. Capital affiliate Bayside Capital has completed an investment in Desmet Ballestra, a French provider of process engineering services, plants and equipment for the oil and fat industries and for the detergents and surfactants industries.
The investment is part of a comprehensive debt restructuring aimed at reducing indebtedness and establishing debt terms consistent with the company’s financial performance.
As part of the transaction, Bayside developed a comprehensive debt restructuring package which included the deferral of senior debt maturities and the conversion of junior liabilities into equity-like instruments.
In addition, new “super-senior” credit facilities totaling €28m were put in place to cover liquidity requirements by Equistone Partners Europe and a diverse group of lenders.
According to a written statement, under the new management team, Desmet Ballestra’s financial performance has recovered substantially. EBITDA nearly doubled from 2010 to 2011, driven by a sharp increase in the order book and the benefits of an operational turnaround.