Europe's First ESG Unitranche
LONDON, Oct. 8, 2020 /PRNewswire/ -- Barings, one of the world's leading financial services firms, today announced that it has served as lead arranger of a senior secured credit facility to support Eurazeo, through its Eurazeo PME subsidiary, in its acquisition of a controlling stake in UTAC-CERAM, alongside the current shareholders (FCDE, CCFA, senior staff and top executives of the Company). Headquartered in France, UTAC-CERAM is a leading provider of development and validation testing solutions for the world's automotive and mobility players. Financial terms were not disclosed.
"UTAC-CERAM performs a mission critical service for the world's automotive players and is widely considered as a reference player in the industry. We are delighted to support Eurazeo and UTAC-CERAM in this new chapter of its growth" said Alice Foucault, Managing Director in Barings' European Private Finance group. "In the current market environment, we remain focused on opportunities to invest in high-quality companies backed by top-tier sponsors, which UTAC-CERAM certainly represents."
The acquisition of UTAC-CERAM, notably marked the negotiation of Europe's first ESG unitranche, between Barings and Eurazeo. The mechanism will consist of an annual review of the margin for the credit facilities, based on the achievement of five pre-defined ESG criteria. This innovation in acquisition financing marks a commitment by Barings, Eurazeo and UTAC CERAM and its management to invest in a responsible economy through the development of new sustainable financial products.
UTAC-CERAM has established itself as one of the leading European automotive testing specialists thanks to its historical know-how and diversified portfolio of activities: development and validation testing for environmental factors, homologation and regulatory compliance, training, consulting, audit and certification, technical inspection, normalization, and the organization of events. The group has 580 employees across its various locations, including its Linas-Montlhéry and Mortefontaine testing centres in the Paris region, but also around the world, with subsidiaries in the United Kingdom, Germany, the United States, China and Japan.
Barings is a $346+ billion* global financial services firm dedicated to meeting the evolving investment and capital needs of our clients and customers. Through active asset management and direct origination, we provide innovative solutions and access to differentiated opportunities across public and private capital markets. A subsidiary of MassMutual, Barings maintains a global presence across North America, Europe and Asia Pacific.
Barings Global Private Finance is a 60+ investment team globally, with a 40-year track record of successfully financing middle-market buyouts, acquisitions, and recapitalizations. With product capabilities that range from traditional senior debt to bespoke junior capital securities, and hold sizes of €200 million+, Barings is focused on providing capital solutions that help our private equity clients complete their deal on time and as expected. Our long-term commitment to the asset class, local origination in each region, consistent team, and broad range of investment capabilities, are designed to provide investors an absolute spread premium to broadly syndicated loans as well as an attractive risk-adjusted return potential.
*As of June 30, 2020
Eurazeo is a leading global investment company, with a diversified portfolio of €18,5 billion in assets under management, including €12,9 billion from third parties, invested in over 430 companies. With its considerable private equity, real estate and private debt expertise, Eurazeo accompanies companies of all sizes, supporting their development through the commitment of its nearly 300 professionals and by offering in-depth sector expertise, a gateway to global markets, and a responsible and stable foothold for transformational growth. Its solid institutional and family shareholder base, robust financial structure free of structural debt, and flexible investment horizon enable Eurazeo to support its companies over the long term. Eurazeo has offices in Paris, New York, Sao Paulo, Seoul, Shanghai, London, Luxembourg, Frankfurt, Berlin and Madrid Eurazeo is listed on Euronext Paris.
ISIN: FR0000121121 - Bloomberg: RF FP - Reuters: EURA.PA
Cheryl Krauss, Media Relations, Barings, 980-417-5858, firstname.lastname@example.org
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