Encompass Digital Media is in the market with a US$250m term loan that will help fund private equity firm Court Square Capital Partners’ secondary buyout of the digital broadcast specialist.
According to SatelliteFinance sources, the term loan will be…
Encompass Digital Media is in the market with a US$250m term loan that will help fund private equity firm Court Square Capital Partners’ secondary buyout of the digital broadcast specialist.
According to SatelliteFinance sources, the term loan will be around 5.5 years in length and pay 650bp over Libor. An additional US$30m five-year revolving credit facility is also understood to be in the process of being provided.
Macquarie, which advised Encompass on the transaction and offered a staple financing package to the acquirer, is sole arranger on the deal.
While financial details for the acquisition were not disclosed, Court Square is believed to have paid around US$475m for a controlling stake in Encompass, approximately US$230m of which was via equity.
The sellers were funds Wasserstein & Co. and Tennenbaum Capital Partners. The former helped form Encompass back in 2008 alongside the company’s CEO Simon Bax and president and COO Bill Tillson. Both executives have retained their stakes in the company post-transaction.
Since its formation, Encompass has sought to gain scale through inorganic growth and a spokesperson for Encompass previously told SatelliteFinance that Court Square’s investment will allow the company to further its policy of expansion through acquisitions.
