LIVE TV
ZEE Business
ZEE BUSINESS
हिंदी में पढ़ें  हिंदी में पढ़ें
Live TV
Live TV
  • Home
  • Budget 2021
  • Personal Finance
    • PPF
    • Mutual Funds
    • Income tax
    • EPFO
    • Income Tax Calculator
    • Personal Loan Calculator
    • Car Loan Calculator
    • Home Loan Calculator
    • SIP calculator
    • SWP Calculator
    • MF Returns Calculator
    • Lumpsum Calculator
  • India
    • Companies
    • Property
    • Startups
    • Uidai
  • Economy
    • Aviation
  • Tech
    • Mobiles
    • Apps
  • Auto
    • Cars
    • Bikes
  • Markets
    • Commodities
    • Currency
  • Jobs
  • Indian Railways
  • World
    • Economy
    • Politics
    • Markets
  • videos
  • photos
  • Authors
  • More ...
    • VIDEOS
    • PHOTOS
Read in App
Business News » World News

More banks set to join financing for Blackstone's Thomson Reuters buyout

  • Twitter
  • Facebook
  • Linkedin
  • whatapp
  • View in App
Updated: Thu, Mar 01, 2018
11:19 pm
Reuters
RELATED NEWS
Infosys Chairman Nandan Nilekani on India's Digital Economy I Kotak Institutional Equities highlights details Infosys Chairman Nandan Nilekani on India's Digital Economy I Kotak Institutional Equities highlights details
Digital economy to outpace GDP growth, will result in 'competitive advantage period' for leaders in digital space highlights ICICI Securities Digital economy to outpace GDP growth, will result in 'competitive advantage period' for leaders in digital space highlights ICICI Securities
#GSTMakeItEasy: Facing GST related issues? Big initiative by Zee Business - Tweet your problems now! Check all details here #GSTMakeItEasy: Facing GST related issues? Big initiative by Zee Business - Tweet your problems now! Check all details here
India’s economy picking up steam, estimate recovery at 10% in FY22: S&P Global India’s economy picking up steam, estimate recovery at 10% in FY22: S&P Global
RBI Monetary Policy: Governor Das says repo rate unchanged, sees GDP at 10.5 pct for FY22, inflation at 5.4 pct for Q4FY21 RBI Monetary Policy: Governor Das says repo rate unchanged, sees GDP at 10.5 pct for FY22, inflation at 5.4 pct for Q4FY21

inancial and Risk (F&R) unit are set to sign more banks into the deal.

Around 21 senior banks are expected to join the deal, which is being led by JP Morgan, Bank of America Merrill Lynch and Citigroup, and is the biggest buyout financing since the financial crisis.

The lead banks invited 23 banks to join at the next level and underwrite 28% of the deal for fees ranging from around 3% to less than 1%, several sources said.

Blackstone is buying a 55% stake in Thomson Reuters` F&R unit, which includes LPC and IFR. Senior participation in the financing was linked to the amount of business that the banks do with Thomson Reuters.

Banks making the biggest commitments after the leads are Wells Fargo, Morgan Stanley, Goldman Sachs and UBS, the sources said. There could be six or seven tiers of commitments.

Other banks that are expected to join the deal include Credit Suisse, HSBC, Deutsche Bank, Barclays, Royal Bank of Canada, SMBC, MUFG, Mizuho, Societe Generale, Standard Chartered, Natixis, BMO, Toronto Dominion, Unicredit, Intesa Sanpaolo, ING and Jefferies.

The group is expected to be confirmed and banks signed into the deal in the next few days, sources said.

Blackstone could not immediately be reached for comment. JP Morgan, BAML and Citigroup declined to comment.

Lenders may have to sit on their commitments for some time, due to a lengthy commitment period, the sources said.

The deal is not expected to be syndicated more widely to institutional investors until the end of June at the earliest, and could even be launched after the summer, they added. DEAL STRUCTURE

The deal includes a US$8bn-equivalent term loan B, which is split between US$5.5bn and US$2.5bn-equivalent in euros.

The financing also includes US$3bn-equivalent of secured bonds split between US$2bn and US$1bn-equivalent in euros, and US$2.5bn-equivalent of unsecured bonds split between US$1.8bn and US$700m-equivalent in euros.

The company will also place a US$750m revolving credit facility.

Additional funding comes from US$1bn in preferred equity – with a 14.5% Payment-In-Kind (PIK) coupon – US$3bn of cash equity that Blackstone is contributing, and US$2.5bn of existing equity, based on the US$20bn valuation, that will be rolled over.

Leverage is expected to be around 4.5 times through the secured debt and 5.6 times total debt after Ebitda adjustments, which could be as much as 30% as the transaction is a carve-out and involves reallocating costs.

The size of the debt and leverage currently imply Ebitda of about US$2.4bn, including around US$650m of cost savings, based on the last 12 months’ Ebitda of approximately US$1.7bn for the F&R unit.

The currency splits and Ebitda figures may change depending on investor demand the timing of the wider institutional syndication.

(This article has not been edited by Zeebiz editorial team and is auto-generated from an agency feed.)

Get Latest Business News, Stock Market Updates and Videos; Check your tax outgo through Income Tax Calculator and save money through our Personal Finance coverage. Check Business Breaking News Live on Zee Business Twitter and Facebook. Subscribe on YouTube.

TAGS:
Economy
RELATED NEWS
Infosys Chairman Nandan Nilekani on India's Digital Economy I Kotak Institutional Equities highlights details Infosys Chairman Nandan Nilekani on India's Digital Economy I Kotak Institutional Equities highlights details
Digital economy to outpace GDP growth, will result in 'competitive advantage period' for leaders in digital space highlights ICICI Securities Digital economy to outpace GDP growth, will result in 'competitive advantage period' for leaders in digital space highlights ICICI Securities
#GSTMakeItEasy: Facing GST related issues? Big initiative by Zee Business - Tweet your problems now! Check all details here #GSTMakeItEasy: Facing GST related issues? Big initiative by Zee Business - Tweet your problems now! Check all details here
India’s economy picking up steam, estimate recovery at 10% in FY22: S&P Global India’s economy picking up steam, estimate recovery at 10% in FY22: S&P Global
RBI Monetary Policy: Governor Das says repo rate unchanged, sees GDP at 10.5 pct for FY22, inflation at 5.4 pct for Q4FY21 RBI Monetary Policy: Governor Das says repo rate unchanged, sees GDP at 10.5 pct for FY22, inflation at 5.4 pct for Q4FY21

LATEST NEWS

ITC Share Price: Experts give 'share to buy' tag; predicts up to 50% profit in three months

Ethanol from sugar will lower dependency on Crude import, create jobs and improve earnings of farmers

Call of Duty Mobile vs Garena Free Fire comparison: Here's all you need to know about these battle royale games

Elijah Wood, Cate Blanchett set to reunite as ''Lord of the Rings'' turns 20

NEET 2021 exam: Check here the latest update on dates and all you need to know for registration before appearing in the test

Tom Felton shares throwback picture with Harry Potter co-stars

Indian economy outlook 2021: This is why FY 2021 GDP performance will be better than projection—Finance Ministry EXPLAINS

Gold Price Outlook – Gold, Silver prices may see further fall next week; expert tells what to do to maximise gains

TMC Candidates List 2021 - Names of 291 candidates announced for West Bengal Elections; See Complete List Here

Gurugram college students protest, demand online exam

  • India News
  • World News
  • Companies News
  • Market News
  • Personal Finance News
  • Technology News
  • Automobile News
  • Small Business News
  • Income Tax Calculator
  • Live TV
  • Videos
  • Photos
  • Author
  • Rss Feed
  • Advertise with us
  • Privacy Policy
  • Legal Disclaimer

Latest Trending Updates

  • EPFO
  • Budget 2020
  • Income Tax Return
  • Auto Expo 2020
  • Home Loan
  • Business News

Trending Topics

  • Income Tax
  • income Tax Calculator
  • 7th Pay Commission
  • Reserve Bank of India
  • GST
  • Latest Business News

Follow us on

zeebiz
zeebiz

Partner Sites

  • Zee News
  • Hindi News
  • Marathi News
  • Bengali News
  • Tamil News
  • Malayalam News
  • Gujarati News
  • Telugu News
  • Kannada News
  • DNA
  • WION
Copyright © Zee Media Corporation Ltd. All rights reserved