SBC News CVC Capital adjusts loan terms to increase investor support

CVC Capital adjusts loan terms to increase investor support

skybet

Private equity group CVC Capital Partners announced that it was due to close its £390 million leveraged loan which will be used in the acquisition of a controlling stake in BskyB’s Sky Bet operations.

CVC Capital had adjusted loan margins and added further investment conditions in order to attract investors to the deal.

Reuters Business news reports that the £390 million lien tranche will be set to pay 525 bases points, up from the initial guidance set at 500 basis points. Furthermore CVC Capital will not be able to reduce debt interest for the initial 12 months.

Further conditions attached to the loan will mean that CVC Capital will not be able to take a dividend from excess cash flows unless leverage is at 4.5 X, a lower level than its initial 5.25x leverage condition.

CVC Capital will hope that the new conditions sooth investor concerns relating to gambling investments. Reuters had reported that there had been concerned parties with regards to the UK online gambling industry which has undergone regulatory change and the introduction of the new POC tax.

Goldman Sachs is leading the financing alongside Barclays and Royal Bank of Scotland.

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