LONDON Aug 20 German car parking business Apcoa , owned by French private equity firm Eurazeo, has agreed a financial restructuring of its 650 million euro ($863.40 million) debt facility that will see lenders take control of the company through a debt for equity swap.
Over 95 percent of Apcoa's lenders have now entered into a formal lock-up agreement, setting out the terms of the deal that will reduce the group's debt by more than 440 million euros, the company said in a statement on Wednesday.
Once lenders enter a lock up phase it means they, and any new owners of the debt should they decide to sell it on, are bound by the restructuring plan.
Following the restructuring, Apcoa will be owned by a group of distressed investors including US fund Centerbridge, which owns approximately 50 percent of Apcoa's debt, according to a source close to the deal.
Centerbridge bought millions of euros of Apcoa's debt on Europe's secondary loan market at the end of last year in a bid to gain control of the parking management firm.
Centerbridge was not immediately available to comment.
As well as the debt reduction, Apcoa has raised a further 90 million euros of additional financing from Deutsche Bank and extended the refinanced facilities for a further six-year period.
Lenders have already agreed to extend the group's current financing maturity date to October 25, by which time the restructuring, implemented via a UK scheme of arrangement, will have been formally completed.
In March, a UK judge agreed to change the jurisdiction of Apcoa's loan documents to the UK to enable an amend and extend on its 650 million euros of debt using a scheme of arrangement, which only needs consent from 75 percent of lenders.
Apcoa was bought by Eurazeo for 885 million euros in August 2007 from Bahrain's Investcorp at the peak of the buyout boom, but has struggled to manage its debt burden in a weak growth environment in Europe.
PWC, Linklaters and Clifford Chance are advising the company on the financial restructuring, Lazard and Rothschild are advising Eurazeo. (1 US dollar = 0.7528 euro) (Additional reporting by Alexander Huebner in Frankfurt; Editing by Chris Mangham)