BUSINESSDESK: Champ Private Equity has hired Goldman Sachs to sell its indebted printer Blue Star Group after receiving unsolicited approaches to buy the business last month.
Goldman Sachs is assessing the approaches and looking at other possible avenues for sale on behalf of Sydney-based buy-out firm Champ, which bought its controlling 84% stake in Blue Star in 2006 from interests associated with then-managing director Tom Sturgess at a price based on an enterprise value of $385 million.
Senior lenders had agreed to maintain their support during the sales process, Blue Star said. It last year convinced bond holders to roll over $105 million of NZDX-listed bonds, extending the term and providing more financial covenant headroom.
The new bonds, which mature in September 2015, last traded at 1.2 cents per $1 face amount.
While the restructuring provided some breathing space, Blue Star’s trading has not been as strong as had been hoped when it issued a prospectus for the transaction.
In its first-half results, chairman Nick Greiner said earnings before interest, tax, depreciation and amortisation for the year ended June 30 would fall short of the $A53.6 million it had forecast as a “poor trading environment” in the first half was likely to continue.
Blue Star’s sale price is reportedly $A100 million to $A150 million, depending on the shape of the sale, the Australian Financial Review reported, though company sources called that “just speculation” and wouldn’t confirm that the sale could be completed in a matter of weeks.
Blue Star has bank debt of some $A167 million and finance leases of $A43 million. The printing group also owes Champ $16 million via a senior loan, bringing the total owed to $A226 million.
The amended capital bonds were given at $A18.7 million, compared to the value of the pre-amended bonds a year earlier of $A135 million including accrued interest.
This article is tagged with the following keywords. Find out more about MyNBR Tags
Most listened to
- IDC's Chayse Gorton on Kiwis' online vs offline shopping preference - and how it's out of step with the rest of the world
- NZSA chief executive Michael Midgley on how he will vote undirected Fletcher proxies
- Restaurant Brands' Grant Ellis discusses progress at the fast food group
- Rob Hosking says politicians need to understand the effect their promises will have on what the Reserve Bank has to do
- AMP Capital investment manager Jonathan Armstrong discusses why an expansion is right for Tauranga's Bayfair shopping centre
- NBR Radio: The best interviews, with Grant Walker — updated daily