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Reuters – Focus Media Raising $1.5M Debt for Buyout Deal

Chinese display advertising company Focus Media Holding Ltd is raising a $1.5 billion leveraged loan to back a $3.5 billion buyout which will take the company private, Reuters wrote Tuesday. Focus Media is being bought by a consortium which includes the Carlyle Group, CITIC Capital Partners, CDH Investments, China Everbright Ltd, Fountainvest Partners and Focus Media’s chairman, Jason Nanchun Jiang.

 

(Basis Point) – US-listed Chinese display advertising company Focus Media Holding Ltd is raising a $1.5 billion leveraged loan to back a $3.5 billion buyout which will take the company private, banking sources said on Tuesday.

 

The delisting, if successful, will be the biggest buyout of a US-listed Chinese company and the $1.5 billion leveraged loan is also the largest for such a firm.

 

Focus Media is being bought by a consortium which includes US private equity firm Carlyle Group, CITIC Capital Partners, CDH Investments, China Everbright Ltd, Fountainvest Partners and Focus Media’s chairman, Jason Nanchun Jiang.

 

Citigroup, Credit Suisse and DBS Bank said that they are confident of underwriting a loan financing to back Focus Media’s delisting, the company said on Monday.

 

Banking sources said that the loan is in early stages and terms are still being finalised.

 

(Reporting by Prakash Chakravarti, Jacqueline Poh)