Lion, a private-equity firm that has bought some of Findus's subordinated debt, has teamed up with two US hedge funds that also own the notes in a bid to prevent senior lenders from taking over the business, the newspaper said. Senior lenders include GSO, JPMorgan, Nordea, RBS and Société Générale and the Royal Bamk of Scotland.
Triton's £240 million ($371 million) offer would repay senior lenders in full while wiping out the junior debt holders, the Times said. Findus, which generated £1.1bn of sales in 2010 and employs 6,000 people, has proved a tricky investment for Lion Capital, a number of whose consumer-facing assets have turned sour as shoppers spend less at the tills.
The rising cost of ingredients, including seafood, has put further pressure on the UK-headquartered Findus. As a result, Lion has sought various options, including an ultimately abortive sale of Findus' Nordic operations. That has encouraged Triton, a firm that focuses on northern Europe and has made 40 investments, to offer funds to pay down senior debt and oust Lion as equity owner.
In response, Lion has lifted the size of the capital injection it proposed making in March. Lion and big mezzanine debt holders now plan to pump in £150m of new money, up from £125 million, as well as £70 million of bridge financing, provided by JPMorgan.That would help pay down some of the group's £700m gross debt and reset some of the terms of the financing.
