LONDON, June 16 Luxembourg-based satellite TV business M7 is raising an extra 110 million euros ($149.77 million) of leveraged loans that will be used to pay a dividend to private equity owners, banking sources said on Monday.
This will be the second dividend to be paid to Providence Equity Partners and Airbridge Investments in the space of a year after taking around 312 million euros in a dividend payment last summer as part of a wider 335 million euro refinancing, according to Thomson Reuters LPC data.
Deutsche Bank is leading the deal and lender commitments are due by Wednesday for the term loan C that is guided to pay 425 basis points over Euribor.
Providence Equity Partners, Airbridge Investments and M7 were not immediately available to comment.
The refinancing equates to around 4.2 times the company's approximate 100 million euro EBITDA. The company had leverage of 4.2 times after last year's refinancing but has de-levered to around 3 times through EBITDA growth, an acquisition and paying down 33 million euros of debt from its large cash flow.
In 2007, Providence Equity Partners bought a 50 percent stake in Canal Digitaal in the Netherlands from Airbridge, backed with 250 million euros of debt. They then expanded the company to include TV Vlaanderen in Flanders, TeleSAT in Belgium, AustriaSat in Austria and CS Link and Skylink for the Czech and Slovak market. The group was branded M7 in 2009. ($1 = 0.7345 Euros) (Editing by Christopher Mangham)