TPG acquires 20% of MediaWorks' senior debt for $54m

MediaWorks, which was bought by Ironbridge Capital for approximately NZ$790 million in 2007 in a leveraged buyout, is said to be saddled with NZ$388 million in senior debt, held by additional lenders including Bank of New Zealand, Bank of Scotland International, JP Morgan and Rabobank.

Domestic reports suggest that Ironbridge's hold on the company may be in jeopardy following TPG's purchase, as MediaWorks' debt holders may force Ironbridge out.

TPG has not disclosed how much it paid, though reports earlier this week noted that CBA was looking to sell its NZ$70 million of senior debt for NZ$0.50 on the dollar. TPG is expected to convert the debt to equity, mirroring processes it completed with other portfolio companies such as Australia's Alinta.

MediaWorks' solvency struggles stem from a decline in advertising revenue amid ongoing economic volatility. Interest.co.nz reported that the company's debt load represents about 11x MediaWorks' EBITDA - twice as much debt as the business can realistically operate under. In addition to its NZ$388 million in senior debt, MediaWorks has NZ$97 million of subordinated debt held by Halifax Bank of Scotland, Royal Bank of Scotland and Ironbridge; a NZ$24 million facility managed by Goldman Sachs; and a NZ$43 million deferred-spectrum payment for radio licenses with the government.

Last week, reports surfaced that CBA also sold about A$37 million ($37.6 million) of senior debt in CVC Asia Pacific-owned Nine Entertainment, picked up by hedge funds. BNP Paribas was said to have unloaded around A$90 million of the debt at the same time.

Nine, one of the largest private equity-owned companies in Australia, has A$2.6 billion of senior debt, which CVC is looking to restructure.

• Tweet  
• Facebook  
• LinkedIn  
• Google plus  
• Save this article  
• Send to  

• Topics
• Australasia
• Media
• Credit/Special Situations
• Ironbridge Capital
• TPG Capital
• New Zealand
• TMT
• Distressed