Bridgepoint Serving Azzurri Lenders New Loan Plan for DividendBy
Sponsor to discuss transaction with creditors tomorrow
Total 2.76 billion euros leveraged loans in 2016 for dividends
Azzurri Group Ltd., operator of the U.K.’s ASK Italian, Zizzi and Coco di Mama restaurant chains, plans to ask lenders for 83 million pounds ($105 million) to repay existing debt and finance a dividend payment to its private equity owner, Bridgepoint.
The company has scheduled a call with the group’s creditors for tomorrow to discuss details of the proposed transaction, according to a person familiar with the matter, who is not authorized to speak publicly and asked not to be identified.
The planned deal follows an existing 90 million pound facility arranged in January 2015 by Rabobank, HSBC Holdings Plc, Lloyds Banking Group Plc, Royal Bank of Scotland Group Plc, Mediterranean Bank Plc and Allied Irish Bank Plc, the person said.
Companies have raised a total of 2.76 billion euros from creditors for dividend payments to their owners this year, according to Bloomberg Data, as high investor demand for leveraged loans has allowed more favorable terms for borrowers.
Bridgepoint, which acquired the restaurant group in 2015 for 250 million pounds from private equity peer Cinven, declined to comment.
-- With assistance from Ruth McGavin in London