Private equity-backed Spanish pizza delivery company Telepizza is reportedly set to refinance existing loans with a new first lien loan and a new payment in kind (PIK) loan.
The refinancing will repay lenders in full and help Telepizza escape an expensive debt restructuring, banking so8urces told Reuters.
Most of Telepizza’s existing PIK loan will be swapped for equity and its private equity backer KKR will provide €180m.
Private equity firm Permira bought Telepizza for €962m in 2006 and will own a 55 per cent stake in the company after the refinancing, said the people.
KKR will own 36 per cent and former PIK lenders will hold a nine per cent interest.
The refinancing is led by Morgan Stanley and KKR Capital Markets.
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