Italian construction and engineering firm TREVI - Finanziaria Industriale S.p.A. chose U.S. asset management firm Bain Capital Credit LP for a rescue deal worth €900 million, or $1.06 billion, four sources reportedly told Reuters.
Trevi has been dragged down by a slump in the oil and gas industry and a weak construction sector. The struggles led the company to restructure debt amassed under its capital-intensive business model, according to Reuters.
Bain won the auction over a rival proposal by U.S. investment fund Sound Point Capital, while a third offer by Quattro R, an investment fund backed by Trevi's second-biggest investor, Cassa Depositi e Prestiti, was pulled earlier this year following due diligence, the sources reportedly said.
Under the rescue deal, Bain will issue €150 million of new debt to keep the company afloat, the sources told Reuters. They added that the proposal will also include issuance of "super senior bonds," which put holders at the top of the repayment hierarchy, and a partial conversion of Trevi's debt into financial instruments other than shares.
The sources said that Bain pledged to trim the company's leverage ratio to three times its EBITDA by 2019. Trevi's gross debt stands at €765 million, according to Reuters.
Reuters said Bain and Sound Point were not immediately available for comment, while Trevi and Quattro R declined to comment.
