RLPC-Banks line up 400 mln stg loans for All3Media buy

LONDON Mon May 12, 2014 12:36pm EDT

LONDON May 12 (Reuters) - John Malone's Liberty Global Plc and Discovery Communications' acquisition of UK-based All3Media, will be backed with around 400 million pounds ($674.85 million) of leveraged loans, banking sources said on Monday.

JP Morgan and Bank of America Merrill Lynch are advising on the financing and a bank meeting to showcase the deal is due to take place on Tuesday in London, the banking sources said.

Liberty Global and Discovery announced last week that they were jointly buying All3Media from its founders and private equity firm Permira, in a deal valuing the company at $930 million. [ID: nL3N0NU6L7]

The debt financing includes 290 million pounds of first lien loans guided to pay an interest margin of between 400-425 basis points (bps), 100 million euros of second lien loans guided to pay an interest margin of 700-725 bps, and a 30 million pound revolving credit facility. Both the first and second lien loans are offered with a 1 percent Libor/Euribor floor, the banking sources said.

Lender commitments are due May 28, the banking sources added.

All3Media, which produces hit TV shows such as "Skins", "Midsomer Murders", "Hollyoaks" and "The Only Way is Essex", had revenue of about 505 million pounds in the fiscal year ended August 2013. ($1 = 0.5927 British Pounds) (Editing by Christopher Mangham)