Marsico Capital Management LLC, the asset manager led by Thomas Marsico, reduced its debt by more than half through a restructuring that cut management’s equity ownership to less than 40 percent, said three people familiar with the deal.
The agreement with creditors shrank Marsico’s senior debt to about $500 million from $1 billion, and junior debt to about $200 million from $600 million, said the people, who asked not to be named because the process was private. Under the terms, the debt now matures in 2022, and creditors are eligible for distributions from management fees to service debt, they said.
This is the second time Marsico, which has about $31.2 billion under management, has restructured since 2010. The Denver, Colorado-based firm’s management will retain voting control even though its equity stake is declining from 51 percent, two of the people said.
Marsico Chief Financial Officer Neil Gloude said via phone that 100 percent of the senior and junior creditors agreed to the restructuring, without detailing the terms.
Founded in 1997 by Marsico, the firm employed 65 people as of July 31, including an 18-member investment team, according to its website. Marsico restructured $2.7 billion debt in November 2010, persuading creditors to extinguish about $1.04 billion in exchange for a 19 percent equity stake, according to a statement at the time.
Marsico’s debt increased by $2.5 billion in 2007 as part of the management-led buyout of the firm from Bank of America Corp. In the current restructuring, Houlihan Lokey advised the junior creditors, while Moelis & Co. advised Marsico, said the people.
Andrea Hurst, a spokeswoman for Moelis, declined to comment, as did John Gallagher, a spokesman for Houlihan.