Nine Entertainment targets listing within 18 months
Nine Entertainment is expected to list on the Australian Securities Exchange within 18 months following its A$3.4 billion ($3.5 billion) recapitalization, according to court documents submitted this week. The company reached an agreement with its creditors in October, resulting in CVC Capital Partners’ A$1.8 billion equity in the business almost completely wiped out.
The documents state that Nine's directors will have ultimate discretion on the structure and timing of a listing, which suggests that the 18-month limit isn't binding should market conditions remain unfavorable, The Australian reported.
The information was disclosed as part of a legal challenge by a group of creditors that oppose the recapitalization plan because they want to be fully compensated in cash, rather than a combination of cash and equity.
Once the debt recapitalization is completed, Apollo Global Management and Oaktree Capital Group are likely to own close to 49% of Nine. They will each appoint two new directors and have the right to appoint a fifth, giving them control of the nine-person board.
A group of about three dozen senior lenders and hedged parties that were owed A$2.29 billion by the company will receive at A$0.25 on the dollar of the original debt, plus shares. The mezzanine debt holders, which lent Nine A$1.17 billion, most of it from Goldman Sachs-controlled funds, will receive A$22.5 million in cash, plus a 3.75% equity stake.
CVC will get A$4.5 million in cash and just over 1% in equity. The private equity firm paid A$5.3 billion for Nine - formerly known as PBL Media - through several highly leveraged transactions between 2006 and 2008.
The recapitalized Nine will carry about A$700 million in new debt.
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