The group that has emerged as the frontrunner in the bidding for cable television’s Weather Channel has assembled a financing package that shows how dramatically the buy-out world has changed since the onset of the global credit crisis. The consortium, which includes NBC Universal and buyout firms Bain Capital and Blackstone, is expected to bid $3bn-$4bn for the channel, being sold by privately-held Landmark Communications. The deal under consideration is unusual because the consortium is offering about $1.8bn in equity – or more than half the value of the expected deal. Also, GSO Capital – an asset manager specialising in leveraged debt that Blackstone bought last year – will provide $650m in mezzanine debt, suggesting Blackstone now has greater ability than its peers to finance its own deals.
