Norton Rose Fulbright South Africa advises Kholo Capital and Maia Capital Partners on R250 million mezzanine funding for Catapult Group

Norton Rose Fulbright South Africa has advised Kholo Capital Mezzanine Debt Fund and Maia Debt Impact Fund on the provision of R250 million in mezzanine debt funding to Catapult Group, a leading South African manufacturer and distributor of specialised building products.

The funding will support Catapult’s ongoing growth capital expenditure programme and partially refinance existing senior debt, enabling enhanced cashflow flexibility as the company continues its strategic expansion.

Catapult has built a robust footprint across the commercial, industrial, and residential property sectors, strengthened by the acquisitions of Everite and Swartland. 

NRFSA acted as legal counsel to Kholo Capital and Maia Capital Partners in their capacity as mezzanine lenders. The team advised on the structuring, negotiation and finalisation of the mezzanine facility agreement, the related security package and intercreditor arrangements with the senior lender.

"This was a complex financing transaction that required careful balancing of the interests of both mezzanine lenders and the senior lender. Our team worked closely with all parties to ensure the legal framework aligned with the commercial objectives of the transaction, while providing Catapult with the flexibility required for its growth ambitions." said Izak Lessing, banking and finance director at Norton Rose Fulbright South Africa.

The NRFSA team included Izak Lessing, director, supported by Dillon Harris, senior associate, Adrienne Hendricks, associate and Adriaan Lourens, candidate attorney.

This matter underscores the firm capability in advising on sophisticated capital structures and demonstrates the firm’s continued leadership in the private capital and (mezzanine) debt financing space.