Successful refinancing of Selecta

Placement of a high-yield bond (senior secured note) and an unsecured junior PIK note / Selecta is now in an excellent position for further growth / Leading market position can be further strengthened

Vending machine operator Selecta, a subsidiary of Allianz Capital Partners (“ACP”), has successfully completed an early refinancing of its capital structure. This provides the company flexibility for investments in its machine park and the further implementation of its on-going growth strategy. Selecta placed a high-yield bond (senior secured note) and an unsecured junior PIK note to recapitalize and repay in full the company’s senior credit and mezzanine facilities. The senior secured bond includes two tranches with an overall volume of 550 million euros at a yield of 6.5 percent. The investment firm KKR Asset Management will provide an additional 220 million euros long-term financing to Selecta. On the basis of this stable long-term financing, Selecta is in an excellent position to finance future growth projects.

"The notable interest for our financing demonstrates the confidence the financial markets have in Selecta’s sustainable business model. We are confident that based on the strategic initiatives and efficiency measures implemented over the past 18 months Selecta is well positioned to further strengthen its leading market position. We are delighted to be backing the management going forward," said Joerg Spanier, Managing Director at Allianz Capital Partners (ACP).

Remo Brunschwiler, CEO of Selecta said: "Since the beginning of 2013, we have managed to implement successful measures leading to improvements to the business and set the course for further growth. The refinancing helps us to drive the identified growth initiatives such as the further roll-out of Starbucks Corner Cafes and the introduction of newly developed vending machines into the market."

Mark Brown, Director Special Situations at KKR Asset Management, added: "We look forward to partnering with Selecta and ACP. We believe the company now has the liquidity and a long-term, patient capital structure to pursue several attractive strategic initiatives. Our investment funds are built on long-term capital and offer a solution to companies who seek access to diversify their sources of funding."