Bain, Lee Pressure Banks To Fund CC Deal
April 2, 2008 at 5:31 AM (PT)
The private-equity firms seeking to acquire CLEAR CHANNEL COMMUNICATIONS demanded a response from their banks to the buyers' MARCH 26th proposal on financing the $27 billion transaction, reports THE NEW YORK POST.
The major sticking point to completing the deal is the banks' attempt to change previously agreed to terms of the funding, lawyers at ROPES & GRAY, which is representing BAIN CAPITAL and THOMAS H. LEE PARTNERS in the purchase, said in a letter sent to the lenders yesterday.
"There is only one fundamental issue that divides us: your changing the agreement to convert a committed 7-year long-term financing into a 3-year bridge," according to the letter, a copy of which was obtained by BLOOMBERG NEWS.
There is only one fundamental issue that divides us: your changing the agreement to convert a committed 7-year long-term financing into a 3-year bridge.
The buyout firms were responding to a statement MONDAY by the six banks, including CITIGROUP, that they were willing to negotiate the financing terms.
BAIN and THOMAS H. LEE PARTNERS, also known as THL, are asking courts in NEW YORK and TEXAS to force the banks to lend more than $20 billion to complete the purchase.
The bank group stands to lose as much as $2.7 billion if the banks fund the deal because loan prices have tumbled since they agreed to finance it a year ago.