Putting innovative financing to the test

Article Abstract:

The financing structure for Charterhouse Development Capital's 380 million pounds sterling leveraged buyout of Inchcape Testing Services (ITS) was revolutionary. The equity was divided between PIK preferred, preference and ordinary shares, while the debt financing was divided into three layers. The innovative use of financial engineering has challenged existing parameters. Private equity houses started to raise a higher level of funds during 1995-97 so that large transactions need to be led instead of shared. The distinction between MBIs and MBOs is becoming less clear.

Column, Management buyouts, Inchcape Testing Services, Charterhouse Development Capital

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On track for rail deals

Article Abstract:

The U.K.'s rail privatization program began in 1994 and some 50 separate businesses are to be sold off. There is a unique opportunity for venture capital companies to provide a potential 2 billion pounds sterling of acquisition debt. The government has separated train operations from the track and infrastructure, with newly-created Railtrack being at the centre of the new, privatised industry. The role of acquisition debt in passenger rail franchising is examined.

Holding companies, not elsewhere classified, Offices of Other Holding Companies, Railroad Holding Companies, Privatization, Privatization (Business), Government business enterprises, Public enterprises

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Merlin seeks to apply magic skills to the airwaves

Article Abstract:

Merlin Communications has been formed from the management and employee buyout of BBC World Service Transmission from the UK government. The complex deal, valued at 21.2 million pounds sterling, was backed by venture capital company 3i's Thames Valley office with a total of 12.9 million pounds sterling and was advised by Shreeveport Management Consultancy.

Radio and Television Broadcasting, Radio & TV Broadcasting, Mergers, acquisitions and divestments, Broadcasting industry, Broadcasting, 3i Group PLC, Merlin Communications, BBC World Service Transmission

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