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CORRECTED-RLPC-Banks line up debt financing to help Dering finance TDF buy
February 14, 2014 / 11:50 AM / 4 years ago

CORRECTED-RLPC-Banks line up debt financing to help Dering finance TDF buy

(Makes clear in final paragraph that Jenkins set up Dering)

By Claire Ruckin

LONDON, Feb 14 (Reuters) - Banks are lining up about 2.65 billion euros ($3.62 billion) of debt financing for private equity firm Dering Capital to buy French broadcasting masts operator TDF, banking sources said on Friday.

BNP Paribas, Citi, Credit Suisse and Goldman Sachs are leading the debt financing, the sources said.

TDF owners TPG, Ardian, Charterhouse and French sovereign wealth fund FSI decided last year to sell the company and hired Goldman Sachs and Rothschild to do the deal. They are hoping to get 4 billion euros for TDF to repay its 3.8 billion debt.

A successful sale of the French unit, which accounts for more than half of the group’s revenues, may pave the way for the disposal of TDF’s second-largest unit, its German business - Media Broadcast.

The debt package totals 7 times TDF’s core earnings of approximately 380 million euros, the sources said, and will include a mixture of euro-denominated leveraged loans and senior secured and unsecured bonds.

Dering will be able to tap dollar funds if needed although enough demand is expected from euro investors because the credit is well known to that loan market, the sources said.

The New-York based firm became the last remaining bidder in the race for TDF after a Canadian consortium dropped out.

A number of TDF’s existing lenders will remain invested with the company after a change of ownership, the sources said.

The financing is due to launch for syndication in the coming weeks and will be sold to banks and institutional investors.

Neither Dering, set up in 2011 by former Blackstone executive Ben Jenkins, nor TDF were available for comment. ($1 = 0.7317 euros) (Editing by Louise Ireland)

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