mARCH 2012 100 Legal Transactions 

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 www.lawyer-monthly.com DEAL REPORT

JOHNSON SERVICE GROUP'S £78.5M REFINANCING DEAL

JOHNSON Service Group has successfully concluded a refinancing deal with a consortium of banks that provides access to funds up to April, 2013. The Preston Brook-based company, including its dry cleaning arm headquartered

in Prescot, announced that it has struck a £78.5m funding agreement to replace its previous facility that was due to expire on December 31, 2010. Banks who agreed to the new line of funding include Lloyds Banking Group, The

Service Group will pay fees of 2% in cash at the start of the new facility, in December, 2010. Financial covenants have been agreed and will be tested quarterly, based on cash

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flow, interest and gearing covenants. The group, which comprises dry cleaning, textile hire and facilities management

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Royal Bank of Scotland, Barclays Bank and Santander, the Spanish owner of the Abbey and Alliance & Leicester banks. The new terms include a £20m revolving loan and a £5m overdraft facility. Johnson

divisions, has continued to reduce its debt over the past year, with net debt falling from £78.5m, in December, 2008, to an anticipated level of below £69m by the end of this year. The board said it expected net debt to continue to reduce during the coming year.

John Talbot, Johnson Service Group executive chairman, said: “We are delighted to have continued support from our banks. “We have generated sufficient cash over the last 18 months to significantly reduce the level of facilities required, while maintaining an adequate level of headroom.” LM

DEAL REPORT

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NATIONAL HIGHWAYS AUTHORITY OF INDIA (NHAI) £1.9B PUBLIC BOND OFFERING

M.V. Kini & Co., Advocates & Solicitors has acted as Legal Adviser for the Public issue by National Highways Authority of India (NHAI) of tax free secured redeemable non convertible bonds aggregating to Rs. 10,000 crores having face value of Rs. 1,000 each in the nature of debentures having tax benefits under section 10 (15) (iv) (h) of the Income Tax Act, 1961. The transaction was led by mr. Ravi kini, managing Attorney, mr. Sumit Gupta, Partner,

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mr. Ashish Suman, Principal Associate, ms. Vidisha krishan, Principal Associate, mr. Nilesh Chandra, Principal Associate and mr. Shailendra Somvanshi, Senior Associate. Due to the fact that this was a first ever public issue of tax free bonds by a statutory

authority (NHAI), there were certain challenges with regard to the applicability of various relevant provisions which are applicable in case of a company and not a statutory authority for which Issuer (NHAI) specific exemptions were successfully obtained from SEBI. Another complex issue in the said transaction was regarding the peculiar nature of

security offered by NHAI. In addition, compilation of data from across the country required for carrying out due diligence was also a challenge. LM

Ravi Kini Managing Attorney M.V. Kini & Co., Advocates & Solicitors Bilquees Mansion, 1st Floor, D.N.Road, Fort, Mumbai 400 001. Tel

: (+91) 22 2261 2527 / 28 / 29

Fax : (+91) 22 2261 2530 Mobile: (+91) 98217-66666 Email: ravikini@mvkini.com