Nordic Capital has injected around SKr500m (€47m) into portfolio company Thule in an effort to preserve its controlling stake in the business.
Thule, a Swedish manufacturer of car roof boxes, snow chains and trailers, has been hit by currency movements and a fall in consumer demand for its products.
The company has taken on the new injection from Nordic Capital as part of a financial restructuring that wipes out a loan of about SKr2bn from Goldman Sachs.
Nordic Capital and seven Nordic banks agreed the restructuring, which involves the banks converting some of their senior loans into preference shares.
Those loans have now changed so that interest is paid in kind as opposed to in cash.
A SKr2bn mezzanine loan from Goldman Sachs has been written off, according to the Financial Times.
Thule’s interest burden has been reduced by about 45 per cent and its debt reduced to about Skr5bn as a result of the deal, and Nordic Capital maintains its 70 per cent stake in the business. The rest of the share capital is held by management.
Thule forecasted net sales of SKr6bn in 2008, with Ebitda of up to SKr600m.
Thule was acquired by Nordic Capital for around €1.3bn in 2007, just a previous owner Candover was set to float the business. Candover originally acquired the company in late 2004 for €465m in a secondary buyout from EQT.