Ambassador Theatre Group (ATG) is reportedly looking to refinance its debt with a direct lending deal worth as much as £1.2bn.
The group, which owns major Broadway and the West End theatres, is said to be speaking to direct lending firms about the potential refinancing, according to Bloomberg.
Bloomberg said spokespeople for ATG and its backer Providence Equity Partners declined to comment on the reports.
The business and markets news service said private lenders have won some large deals this year, while a rout in the high-yield and leveraged-loan markets has made investment banks more cautious about underwriting buyouts
ATG owns and operates 58 venues including the Lyceum Theatre and Playhouse Theatre in London’s West End and the Lyric Theatre and Hudson Theatre in New York City. It also runs ATG Tickets.
In its most recent accounts, for the 12 months to March 27, 2021, ATG’s parent company said it had net debt, including finance lease liabilities, of £564.1m. New shareholder loans of £135.0m were raised, offset by repayment of £85.5m of bank loans and £11.1m of finance lease repayments. New shares were issued during the year, raising £151.3m. It spent £54.1m on finance costs during the period.
During the same period, it detailed £583.4m of borrowings, including £427.4m of bank loans (senior debt).