Amadeus Secures Loan Change Approval

LONDON (Reuters) – Lenders to travel reservations firm Amadeus IT Group have approved changes to the group’s loan, paving the way for an expected equity issue, a source close to the deal said on Friday.

Amadeus has secured the pre-IPO loan amendment — which removes a capital expenditure covenant — after it was forced to offer improved terms to its lenders.

A company spokesman declined to comment.

Agent JP Morgan is counting the last votes after more than 80 percent of Amadeus’s lenders agreed to the changes by an early bird deadline of Dec. 16, the source said.

Amadeus, which provides booking software to the travel and tourism industries, appointed Goldman Sachs, JP Morgan and Morgan Stanley to advise on an equity issue in October. [ID:nLE333364]

Sources previously told Thomson Reuters LPC that 910 million euros of the IPO proceeds would be used to reduce the group’s total net debt of 3.4 billion euros ($4.9 billion), bringing leverage to under 3.5 times from around 3.9 times currently. [ID:nGEE5B122J]

Amadeus is majority-owned by private equity firms BC Partners [BCPRT.UL] and Cinven [CINV.UL], which hold 52.8 percent; Air France (AIRF.PA) holds 23.14 percent, and Iberia (IBLA.MC) and Lufthansa (LHAG.DE) own 11.57 percent each. ($1=.6942 Euro) (Reporting by Zaida Espana, editing by Will Waterman)