Shearman & Sterling advised Lecta S.A., a CVC portfolio company, on its reorganisation and its refinancing, comprising a high yield bond issuance of €390 million Floating Rate Senior Secured Notes due 2018 and €200 million 8⅞% Senior Secured Notes due 2019 and a new €80 million Revolving Credit Facility. As part of the refinancing, Lecta S.A. settled an exchange for its previously outstanding Senior Secured Floating Rate Notes due 2014, of which €340,654,000 was tendered in exchange for new Floating Rate Senior Secured Notes due 2018. The transaction involved a significant corporate reorganization of the Lecta group to rationalize the group structure.
Lecta is the second largest coated woodfree paper manufacturer in Europe and operates a significant paper merchanting business. Lecta produces several types of specialty papers, including self-adhesive, carbonless, thermal, metallized and cast coated papers and owns and operates several co-generation plants which help to power its operations.
The Shearman & Sterling team of lawyers advising on the reorganization and refinancing included partners Caroline Leeds Ruby (London-Finance) and Jacques McChesney (London-Capital Markets), together with partnersGeorge Karafotias (London-Mergers & Acquisitions) and Jeremy Kutner(London-Mergers & Acquisitions), assisted by associates David Plattner (London-Mergers & Acquisitions), Ellen Shiels (London-Capital Markets), Richard Porter (London-Mergers & Acquisitions), Yaw Asare (London-Capital Markets), Marwa Elborai (London-Capital Markets), Melissa Gainsford (London-Finance), Camilla Hunter (London-Finance), and Sara Couling (London-Finance), and trainees Daniel England (London-Finance), Lauren Thompson (London-Finance) and Gaetano Petroni (Milan-Mergers & Acquisitions). Partners Bertrand Sénéchal (Paris-Capital Markets), Pierre-Nicolas Ferrand (Paris-Finance) and Arnaud Fromion (Paris-Finance) and associates Arthur Ravignon (Paris-Capital Markets) and Alexae Fournier (London-Finance) advised on French law aspects of the transaction. Partners Craig Gibian (Washington, DC-Tax), Niels Dejean (Paris-Tax), andIain Scoon (London-Tax), counsel Simon Letherman (London-Tax) and associates James Leslie (London-Tax) and Judy Fisher (Washington, DC-Tax) advised on tax aspects of the transaction. Counsel Mehran Massih(London-Environmental) advised on environmental aspects of the transaction.
Shearman & Sterling recently advised Lecta on its acquisition of global paper merchant PaperlinX’s Italian operations in a transaction valued at approximately €45 million.
