Hands moves in on £3.5bn German debt deal
Buyout baron Guy Hands is close to clinching a ¤4.3bn (£3.5bn) debt deal on another investment that has been badly beaten by the financial crisis.
A year after Mr Hands' Terra Firma private equity vehicle lost ownership of The Beatles' music label EMI, he has been forced to come up with a massive refinancing to help salvage his investment in Deutsche Annington Immobilien. This could pave the way for a stock exchange listing that would rake in billions for Mr Hands.
Like EMI, Deutsche Annington, Germany's biggest residential landlord with 190,000 flats, was loaded up with debt. Those loans were due to be repaid or refinanced next year, but a steering committee representing the lenders, which include JP Morgan and Standard Life Investments, have agreed to "amend and extend" the terms.
Mr Hands wants to reduce that debt over the next five years. Previously, he would have tried to refinance the full amount, but the way debt is renewed has changed dramatically since 2007. Such a large number would have been impossible to refinance in current conditions.
However, the proposal would allow Mr Hands to retain a 75 per cent stake in the business, rather than hand over some of his shareholding to the banks for failing to refinance the loans. If the bondholders agree to the proposal, which was sent to them late last week, then it should be agreed by Christmas.
Mr Hands took Citi, which had advised and lent money on the takeover of EMI, to court claiming he had been deceived into overpaying for the business. Terra Firma had already handed over the keys of EMI to Citi over the debt burden and then lost the court case.
Terra Firma recently asked a US appeals court for a new trial. EMI's recorded music operations have since been sold on to Universal Music Group.
- 1 Nigel Farage: Me vs Russell Brand on Question Time – he's got the chest hair but where are his ideas?
- 2 Harry Potter fans can apply to the Hogwarts-inspired College of Wizardry
- 3 Jessica Chambers: 19-year-old woman 'doused with lighter fluid and burned alive' in the US
- 4 Russell Brand calls Nigel Farage 'poundshop Enoch Powell' in BBC Question Time debate
- 5 Orange Wednesdays are no more
Weather bomb in pictures: Storms cuts power for tens of thousands – and snow is on the way
Jessica Chambers: 19-year-old woman 'doused with lighter fluid and burned alive' in the US
Russell Brand calls Nigel Farage 'poundshop Enoch Powell' in BBC Question Time debate
Russell Brand was rendered speechless on Question Time by this man
Fury at Airbus after it hints the super-jumbo may be mothballed
Disgruntled RBS worker writes hilarious open letter to Russell Brand after anti-capitalist publicity stunt leaves him hungry
Nigel Farage defends Kerry Smith 'ch***y' comment: 'If you are going for a Chinese, what do you say you’re going for?'
Nigel Farage's approval rating hits 'record low' as popularity suffers in wake of Ukip sex scandal
Pakistan school attack live: Taliban kill at least 132 children in 'horrifying' massacre
Sony hack: Angelina Jolie branded 'seriously out of her mind' in further embarrassing leaked email saga
Panic Saturday: 13 million Britons spend £1.2bn – while 13 million others across the country live in poverty unable to afford food
iJobs Money & Business
$200 - $350 per annum: Carlton Senior Appointments: Managing Producer Office...
$125 - $225 per annum: Carlton Senior Appointments: San Fran - Investment Advi...
Up to £70,000 per annum + benefits: Sheridan Maine: Are you a qualified accoun...
Up to £65,000 per annum + benefits: Sheridan Maine: Are you a qualified accoun...