Alts. Firms Agree To Countywide Capital Infusion

Feb 19 2009 | 12:57am ET

A quartet of alternative investment firms has agreed to pour £75 million (US$106.4 million) into Britain’s largest realtor.

The capital infusion will allow Countrywide to cut its annual interest payments in half and its debt burden by almost a quarter. The realtor’s bondholders will take a 40% stake in Countrywide in exchange.

The other 60% of Countrywide will be held by four alternatives shops, including current owner Apollo Management, which paid £1.1 billion (US$1.6 billion) for the company in 2007. Since then, it has struggled with the decline of the housing market, leaving it with “unsustainable” levels of debt.

Joining Apollo as co-owners will be Alchemy Special Opportunities, Oaktree Capital Management and Polygon Investment Management.

“This is more about getting the correct capital structure in the next few years given the state of the wider market, particularly the mortgage market,” Countrywide CFO Jim Clarke said. The company said it has already received the support of more than half of its bondholders for the deal; it needs 75%.


In Depth

GSAM's Papagiannis: Liquid Alternatives For The Long Run

Apr 21 2017 | 8:44pm ET

Interest in liquid alternatives cooled a bit last year amid a broad shift in investor...

Lifestyle

Aston Martin Returns To Debt Market As DB11 Drives Turnaround

Mar 31 2017 | 5:21pm ET

James Bond’s preferred carmaker is returning to the public debt markets for the...

Guest Contributor

Debunking Conventional Investment Wisdom (Part II)

Apr 17 2017 | 5:56pm ET

The alternative investment industry is currently replete with buzzwords around data...

 

From the current issue of