Private equity firms Providence Equity Partners and Airbridge Investments are seeking a €355m refinancing package for European satellite TV company M7.
The capital will be used to refinance its debt and pay a “large” dividend of around €300m to the firms, Reuters said. The company has lowered its debt ratio to 0.4 times in 2013, down from a high point of 4.7 times in 2007.
In February 2007 Providence took a 50 per cent stake in Canal Digitaal from Airbridge, utilising €250m of debt. The firm pursued a rollup strategy to bolt on TV Vlaanderen, TéléSAT, AustriaSat, CS Link and Skylink, creating M7 in 2009.
The refinancing, which will be led by BNP Paribas and Deutsche Bank, will comprise a €270m seven-year loan, alongside a six-year €27m loan facility and a €10m revolving credit facility, the report said. The refinancing works out at approximately 4.2 times the company’s estimated EBITDA of €82.7m
Credit Agricole will be sole bookrunner while Mizuho will act as mandated lead arranger
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