BC Partners to lose control of Greek casino operator
Lenders take majority control
By Isabell Witt
LONDON, May 18 canada goose jackets (Reuters) Private equity Canada Goose Outlet firm BC Canada Goose sale Partners troubled Greek casino operator Regency Entertainment has asked lenders to agree canada goose black friday sale a debt for equity swap Canada Goose Jackets after breaching covenants on its 700 million euro ($998.4 million) loan, banking sources said on Wednesday.
The company presented the debt restructuring plan to lenders at a meeting in London on Tuesday, the sources said. The plan was created by co ordinating lenders including cheap Canada Goose Deutsche Bank and Park Square Capital.
The restructuring will remove the company 200 canada goose million euro mezzanine loans, which were raised canada goose factory sale along with 480 million euros of Canada Goose Coats On Sale senior loans in canada goose uk outlet 2006 to back BC Partners buyout of Regency, the Canada Goose Parka banking sources said.
Regency earnings canada goose clearance tumbled as Greek consumer uk canada goose outlet spending fell amid the country escalating sovereign debt uk canada goose crisis. The gambling business has also been hit by a drop in the number of foreign tourists.
BC Partners, canadagoosejacketsaleca which canada goose coats on sale recently agreed to buy Italian clothing retailer Gruppo Coin, declined to comment. [ID:nLDE7492AZ]
The senior loans will be converted into a single five year loan, Canada Goose Online paying interest margins of canada goose uk shop 300 basis points (bps) over EURIBOR in cash and 100 bps as a Payment In Kind loan (PIK), the sources added.
PIK canada goose store loans allow companies to roll up canadian goose jacket interest payments for payment at a later date, which eases pressure on the company finances by reducing its cash outflow.
Lenders may also provide 35 buy canada goose jacket million euros of new debt, which would be senior to the new restructuring loan.
BC Partners equity stake in Regency, which operates casinos in Mont Parnes and canada goose clearance sale Thessaloniki, will be reduced to 15 percent after the restructuring.
Mezzanine lenders will swap their Canada Goose online debt for a majority stake of 72.5 percent in return for writing down their loans and senior lenders will hold a stake of 12.5 percent in the canada goose uk black friday company.
All shareholders stakes will be diluted after new management receive a 10 percent stake in the business as part of a management incentive plan.
The plan has the support of other key lenders, cheap canada goose uk including debt investment funds Avenue Capital, Carlyle Group and canada goose coats Castle Hill. The deadline for agreeing the debt for equity swap is buy canada goose jacket cheap June 3, banking sources said. ($1=.7011 Euro) (Editing by Jon Loades Carter).