RLPC-AXA PE tables offer for JVH Gaming's debt -sources
LONDON, Aug 8 (Reuters) - AXA Private Equity has tabled a proposal to buy all of Dutch gaming firm JVH Gaming BV's debt for around 70 cents in the euro, banking sources said on Friday.
The offer was discussed at a bank meeting on Friday that considered restructuring options for the company after a waiver ran out on its 295 million euros ($447.4 million) buyout debt package on August 1, a source close to the deal said.
Waterland, the private equity consortium that owns JVH Gaming, had proposed that banks inject more money into the company and take an equity stake in a debt for equity swap that may realise 70 cents in the euro at a future date. However, banking sources said that AXA's proposal is more attractive as it offered an imminent cash payment.
AXA has asked for three to four weeks to conduct due diligence on the deal. Banking sources said that lenders could exercise control over the company's equity in this period unless Waterland comes up with an offer equal to or better than AXA's offer.
The news is positive for JVH Gaming's existing loan syndicate as the price of the debt, which has been trading at around 40 cents in the euro, is likely to rise to the offer price. The secondary price of the loan rose to 50-55 cents on Friday.
Waterland -- a consortium including Hutton Collins - acquired JVH in May 2006 from ABN Amro and NPM Capital, backed with a 172.5 million euro loan and 42.5 million euro mezzanine tranche that was arranged by Bank of Ireland and CIBC World Markets, according to RLPC data.
JVH returned to the market in June 2007 for a further 80 million euro add-on to its original buyout financing.
The company has been challenged by a new tax regime for slot machine operators that will translate into higher taxes, and a smoking ban that drives customers away from gaming sites.
Waterland appointed restructuring advisors Houlihan Lokey and law firm Allen & Overy, while the creditor committee, led by the Bank of Ireland (BKIR.I), is advised by KPMG [KPMG.UL]. (Reporting by Tessa Walsh, additional reporting by Elena Moya, Writing by Alasdair Reilly; Editing by Andy Bruce)
