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Terra Firma backers approve bond sale
By CMU Editorial | Published on Friday 31 July 2009
Terra Firma’s financial backers have reportedly approved plans to sell new equity in the still struggling music major EMI in a bid to raise up to £300 million to reduce the music company’s debt obligations to Citigroup.
As previously reported, Terra Firma chief Guy Hands has been looking into various ways to restructure EMI’s debts in recent months, reportedly asking Citigroup if they’d restructure their loans, and even inject some new cash into the flagging company. The issuing of high-yield bonds to other financial institutions in the City is seen as an alternative way of creating the cash flow needed if Citigroup won’t play ball.
According to the FT, Terra Firma’s have backed the bond proposals, even though it will reduce the value of their stakes in the music major. However, any such sale of high-yield bonds will probably not actually take place until the latter part of the year.
