| LONDON, Sept 25
LONDON, Sept 25 Permira is exploring options to
refinance the debt of its Birds Eye food group Iglo and take a
dividend payment, an idea it dismissed earlier, after market
conditions improved in September, banking sources said on
The private equity firm has been considering the possibility
of refinancing the debt of Europe's largest frozen foods group
Iglo after being approached by banks eager to advise on the
deal, bankers said.
Permira declined to comment.
Permira had lined up a dividend recapitalisation with Credit
Suisse and Deutsche Bank just days after rejecting a 2.5 billion
euro joint bid for the company from Blackstone and BC Partners
as interest fell short of its 2.8 billion euro price tag.
Permira decided not to pursue the dividend recapitalisation
plan after it couldn't reach the level of dividend payout it
wanted, loan investors said.
It was seeking to raise around 1.9 billion euros in a
dividend recapitalisation which would have allowed it to
refinance its approximate 1.4 billion euro debt pile and take a
dividend of around 500-600 million euros, banking sources said.
Conditions to conduct a refinancing now look more promising
as there is a lot of liquidity in the market. The high yield
bond market re-opened in September after a long lull and
leveraged loan investors have money to spend, bankers said.
(Reporting by Claire Ruckin; editing by Jason Neely)