Mezzanine supplier to float: Placing will value Intermediate Capital Group at pounds 100m
Tuesday 12 April 1994
Tom Bartlam, managing director, who founded the company with three partners in 1989, said the float would raise pounds 30m, pounds 18m of which will be used to repay existing preference share capital.
ICG sees itself as a 'quasi-bank' and will be listed under miscellaneous financials. It has concentrated on lending to management buyouts in the UK and Europe. For example, it lent pounds 1.7m to John Cleese's Video Arts training films company.
Mezzanine is a form of capital half-way between debt and equity. The founders of ICG believe it is often the crucial layer of financing in a buyout, because it allows a deal to be structured in the most profitable way for investors and lenders.
ICG yesterday reported pre-tax profits for the year to 31 January 1994 of pounds 14.6m, up from pounds 6.1m last time. Mr Bartlam expects the institutions that take up the shares to view ICG as an attractive yield stock, with a premium to market yield.
Mezzanine pays a higher interest rate than the senior debt in a buyout. But it provides a lower long-term return than equity. However, there is normally an equity 'kicker' built into this intermediate debt, either in the form of warrants or rights conversions.
- 1 Vladimir Putin says Russia will fight for the right of Palestinians to their own state
- 2 Ohio Democrat Teresa Fedor speaks out during abortion debate to reveal she has been raped – and is interrupted by laughter from Republicans
- 3 Germanwings plane crash: I have depression. That doesn't make me a psychopath
- 4 The West has it totally wrong on Lee Kuan Yew
- 5 The Gaza fisherman who built his own reef - and was shot dead there by an Israeli gunboat
Vladimir Putin says Russia will fight for the right of Palestinians to their own state
Ohio Democrat Teresa Fedor speaks out during abortion debate to reveal she has been raped – and is interrupted by laughter from Republicans
Germanwings plane crash: Investigators may have already found remains of suspected killer co-pilot Andreas Lubitz
Children take eight Isis captives to be beheaded in latest propaganda video
The battle for the Middle East's future begins in Yemen as Saudi Arabia jumps into the abyss
Ukip supporters are 55 or older, white and socially conservative, finds British Social Attitudes Report
JK Rowling responds to fan tweeting she 'can't see' Dumbledore being gay
Jeremy Clarkson sacked live: Alan Yentob 'wouldn't rule out' ex Top Gear host's BBC return
Woman filmed launching racist tirade against men on the Tube for speaking in 'own lingo'
Street preacher quoting from the Bible fined for calling homosexuality an 'abomination'
The West has it totally wrong on Lee Kuan Yew
iJobs Money & Business
Negotiable: Recruitment Genius: To provide a prompt, friendly and efficient se...
Negotiable: Recruitment Genius: You will be the first point of contact for all...
£18000 - £24000 per annum + benefits: Ashdown Group: HR, Payroll & Benefits Of...
£35000 - £38000 per annum + benefits : Ashdown Group: A highly successful, int...