Blackstone's debt for TR unit buy more than $15 bln: Reuters
The financing backing U.S. private equity firm Blackstone Group’s acquisition of a majority stake in Thomson Reuters’ Financial and Risk (F&R) unit totals more than US$15 billion, banking sources told Reuters. The deal, which consists of a US$14 billion loan and bond financing, also includes a US$1 billion payment-in-kind (PIK) note at the holding company level. The US$14 billion financing is currently being marketed to other banks by the three lead banks Bank of America Merrill Lynch, Citigroup and JP Morgan. The US$1 billion PIK note has already been placed. “I think it’s a great business, it’s a good solid subscription model with sticky customers and high cash conversion, which is what you need for good LBOs,” a syndicate head said. Blackstone will acquire a 55 percent stake in the F&R business in a deal valued at US$20 billion, with Thomson Reuters, controlled by Canada's Thomson family, retaining a 45 percent holding.
