Hedge Funds, Goldman Compromise On Nine Debt

Oct 17 2012 | 9:34am ET

U.S. hedge funds Oaktree Capital and Apollo Global Management have reached an agreement in principal with Goldman Sachs, the holders of Nine Entertainment's mezzanine debt.

Under the terms of the as-yet-to-be-signed deal, senior lenders will own 95.5% of the equity, while mezzanine holders will own the remaining 4.5%, meaning the latter will recover just 10.8% of their original A$975 million investment.

"We believe this is an outstanding outcome for all stakeholders,” Nine Chairman Peter Bush said in a statement. “The business has great momentum and strong cash flow, and now it will have the strongest balance sheet in the industry. It puts the company in a remarkable position to build on the successes of 2012.”

The biggest loser in the deal is CVC Capital Partners, the private equity company that bought Nine from billionaire James Packer in 2007 and injected A$1.9 billion into it between 2007 and 2008. A requirement to refinance over A$2 billion of its debt forced the company into negotiations with its lenders.

Nine's assets include the free-to-air provider Nine Network Australia, Ticketek, Allphones Arena and a 50% interest in the online portal ninemsn.

"The key terms of a deal to recapitalize Nine Entertainment have been agreed in principle. However, a large amount of detail remains to be worked out ahead of the deal being completed and we look forward to concluding that soon," a spokesman for Goldman Sachs Mezzanine Partners told the Wall Street Journal.


In Depth

'Smart Beta' Funds In Regulators' Sights, Hedgies May Be Next

Mar 26 2015 | 11:11am ET

Funds that mimic strategies used by active managers for a fraction of the cost could...

Lifestyle

Study: Both Marriage and Divorce Lead to Negative Hedge Fund Performance

Mar 25 2015 | 6:51pm ET

Trouble at home leads to trouble in the market for fund managers, according to researchers...

Guest Contributor

The Life Settlement: Yield For The Investor And Cash For The Consumer

Mar 31 2015 | 6:48am ET

Investors are languishing in a yield-starved, low-interest rate environment, looking...

 

Sponsored Content

    Mar 9 2015 | 6:35am ET

    Kelly RodriquesKelly RodriquesAs more investors look to diversify, many are beginning to use retirement funds to invest in alternative assets such as private equity and real estate. Kelly Rodriques, CEO & President of PENSCO Trust Company, explains how companies can connect with those looking to use their retirement accounts in a different way. Read more…

Editor's Note