Charterhouse Development Capital, the London-based European buyout firm, has advised investors of a part-realisation of Coral Eurobet, the UK bookmaker it backed in a £860 million ($1.57 billion; €1.26 billion) buyout from Morgan Grenfell Private Equity in August 2002, according to the Financial Times.
Under the arrangement, Charterhouse will recoup 60 percent of the capital it invested in the deal through an £830 million refinancing plan arranged by Lehman Brothers and HBOS which will repay £160m of capital to Charterhouse, the newspaper said.
To fund the original buyout, Lehman Brothers arranged a £610m package consisting of £400m of senior debt, £135m of mezzanine and $75m of payment-in-kind financing. Charterhouse put £272m of equity capital into the deal. Payment of £10m of the purchase price was deferred.
The original investment was made from Charterhouse’s seventh fund, the €2.7 billion Charterhouse Capital Partners VII fund, which held a final close in July last year.
The recapitalisation gives Coral an enterprise value of £1.35bn, an increase in value of more than 30 percent in less than two years, the Financial Times reported.