China in auto power play
It might not shake up the industry just yet, but China's interest in Volvo and Saab is the start of something big in global autos, writes columnist Wei Gu. Commentary
RLPC-Emap B2B 835 mln stg buyout loan restructured-sources
LONDON, July 25 (Reuters) - An 835 million pounds ($1.66 billion) leveraged loan backing Apax APAX.UL and Guardian Media's buyout of UK media business Emap's B2B unit has been restructured and relaunched to a wider syndication, banking sources said on Friday.
The loan has been restructured to reduce leverage levels on the back of a strong company performance, banking sources said on Friday.
The deal was mandated to HSBC, GE Capital, Lloyds TSB and Royal Bank of Scotland at the end of December 2007 and was launched in March this year but received a mixed response from investors.
Concerns were raised over high leverage levels and the company's high debt burden given the potential vulnerability of the cyclical, advertising-driven media sector to an economic downturn.
The arranging banks decided to lower leverage levels by 0.5 times by carving out a new 52.5 million pound junior mezzanine facility from an existing mezzanine facility and creating a new 53 million pound first loss facility from the senior debt.
The junior mezzanine piece will be syndicated while the first loss facility will be held on balance sheet by the arranging banks.
After the restructuring, leverage on the drawn senior debt is 3.9 times and total leverage on the cash-pay debt is 5.9 times, down from 4.6 times and 6.6 times respectively.
Emap's B2B unit focuses on five media areas -- construction, retail, media, automotive and the public sector. As a leading UK trade exhibition organiser the company runs over 400 events across Britain, Europe and the Middle East. (Reporting by Alasdair Reilly; Editing by Quentin Bryar)
