| Add to balance / Manage account | User: | Log out |
| Prospect News home > News index > List of issuers K > Headlines for Kerzner International Ltd. > News item |
Kerzner to get new credit facility, notes for buyout led by management, to tender for existing notes
By Sara Rosenberg
New York, March 20 - Kerzner International Ltd. plans to obtain a new senior secured credit facility and to issue senior subordinated notes to help fund its leveraged buyout by an investor group that is led by management, according to a 6-K filed with the Securities and Exchange Commission Monday.
Deutsche Bank and Goldman Sachs Credit Partners are the lead banks on the debt financing transactions.
As backup for the bonds, the company has received a commitment for a senior subordinated bridge facility.
In connection with the LBO, Kerzner will tender for its 6 ¾% senior subordinated notes due 2015 and its convertible notes, the filing added.
Kerzner is being acquired by its chairman, Sol Kerzner, and its chief executive officer, Butch Kerzner. The investor group also includes Istithmar PJSC, Whitehall Street Global Real Estate Limited Partnership 2005, Colony Capital LLC, Providence Equity Partners Inc. and The Related Companies LP.
Under the purchase agreement, the group will pay $76.00 in cash per outstanding ordinary share. The aggregate transaction value, including the assumption of $599 million of net debt as of Dec. 31, is $3.6 billion.
In accordance with the merger agreement, the company and a Special Committee of Directors will actively solicit superior proposals during the next 45 days.
The transaction is expected to close in mid-2006 and is subject to customary terms and conditions, including the receipt of financing, regulatory approvals and shareholder approval.
Kerzner is a Paradise Island, The Bahamas, developer and operator of destination resorts, luxury resort hotels and gaming properties.
© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere.
For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.