DIVIDEND RECAPITALISATION FOR FÉG ZRT

DIVIDEND RECAPITALISATION FOR FÉG ZRT

October 2006, Budapest

IMAP MB Partners advised the owners of FÉG Zrt, a leading manufacturer of heating equipment, in the implementation of an unusual financial transaction.

Commerzbank provided EUR 12.9 million of senior financing for the deal, which enabled the owners to take out cash from the company to finance investments in other countries.

Total financing exceeded 4 times EBITDA (Earnings Before Interest, Taxes, Depreciation and Amortization) and 2 times book value. Financing was secured by the assets and cash flow of the company, without any external collateral.

DIVIDEND RECAPITALISATION FOR FÉG ZRT