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Ole investment recapitalisation may lead to company sale
By Andy Malt | Published on Monday 27 March 2017
Canadian music publisher Ole is seeking bids of at least $650 million as part of what is known as a recapitalisation process. The move seemingly comes after a major investor decided to pull its money out and could lead to an outright sale of the music rights company.
“Ole has hired RCB Capitol to conduct a process to recapitalise the equity portion of Ole’s capital structure”, a spokesperson for the company told Billboard. “It is certainly possible that some party may suggest buying the company [but] that is not the intention of this process. Ole entered into a $500 million credit facility last summer. It remains well capitalised and will continue to operate as usual for the foreseeable future, including seeking acquisitions that make strategic sense”.
The company has made various acquisitions in recent years, fuelled by investment that largely came from the Ontario Teachers’ Pension Fund. It is reported that this is the investor now seeking to move its money elsewhere.
As mentioned by the company’s spokesperson, Ole was granted a $500 million credit facility by a consortium of US and Canadian banks last September.