About Bavaria Yachtbau GmbH

Bavaria Yachtbau GmbH is one of the largest and most successful producers of sailing yachts and motor boats worldwide. Since 1978, Bavaria has gained widespread recognition in the market for its pioneering fully automated volume manufacturing approach and for the superior value proposition of its product offering.

About Oaktree Capital

Oaktree Capital Management is a leading global alternative investment management firm with expertise in credit strategies. The firm was formed in 1995 by a group of individuals who had been investing together since the mid-1980s in high yield bonds, convertible securities, distressed debt, real estate, control investments and listed equities. Today, Oaktree comprises over 900 employees in Los Angeles (headquarters), New York, Stamford, Houston, London, Paris, Frankfurt, Amsterdam, Dublin, Luxembourg, Dubai, Hong Kong, Tokyo, Singapore, Seoul, Beijing, Shanghai and Sydney.

About Anchorage Capital Partners

Anchorage Capital Partners is a specialised private equity firm that invests in businesses operating below their full potential or undergoing a significant transformation. We seek active partnerships with management teams via control investments where we can apply our unique combination of capital, operational expertise and change disciplines.

The Deal

Bavaria Yachtbau, the German yacht manufacturer acquired by Bain Capital at the peak of the buyout boom, is set to be taken over by Oaktree Capital and Anchorage Advisers.

Oaktree and Anchorage have agreed to take over the company in exchange for writing off 90 per cent of its €960m debts. The two distressed specialists will share ownership of the company and inject €55m of new funds. Oaktree and Anchorage still need the consent of holders of five per cent of the outstanding debt to complete the deal.

Bain, which acquired Bavaria Yachtbau for €1.1bn in mid-2007, has already written off its investment, but is set to retain a small economic interest in the company.

Oaktree bought 40 per cent of the company’s debt at around 35 per cent of face value from Goldman Sachs, which financed the original deal alongside Dresdner Bank. In August, Anchorage bought up Dresdner’s debt claims.

Lazard acted as sole financial advisor of the seller, Altaventure being special advisor of Lazard for the transaction.