Milbank Advises Initial Purchasers and Lenders on the Financing of The Carlyle Group’s Acquisition of Forgital

Milbank LLP has advised the initial purchasers and lenders in connection with the issuance of $505 million aggregate principal amount of 7.375% Senior Secured Notes due 2026 by F-Brasile S.p.A. and F-Brasile US, LLC and the related €80 million super senior revolving credit facility.

The gross proceeds from the offering will be deposited into segregated escrow accounts. Upon release from escrow, the gross proceeds from the offering will be used, among other things, to fund part of the purchase price for the acquisition of the Forgital Italy S.p.A. and to repay substantially all of their existing external debt.

F-Brasile S.p.A. and F-Brasile US, LLC are beneficially owned by funds advised by The Carlyle Group. Forgital Italy S.p.A. is one of the world’s leading manufacturers of steel rings for aircraft engines and other industrial components. This was the first time a co-issuer structure was deployed in the context of a high yield notes offering with an Italian issuer and the first time an Italian issuer issued dollar-denominated notes in the context of a leveraged buyout of this type.

The Milbank team was led by London Leveraged Finance/Capital Markets partners Apostolos Gkoutzinis and Suhrud Mehta, with special counsel Ana Grbec and associates Laura Bonamis, Lauren Obee, Michael Gatter, Dimos Papanikolaou, Joseph Richmond and Jessica Savoie. The team also included New York Tax partner Andrew Walker and associates Ben Heller and Archan Hazra, New York Leveraged Finance partner Michael Bellucci and associate Jonathan Edwards and London Tax special counsel Matthew Mortimer and associate James Seddon.