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.

This entry was posted by Gwen Robinson on Thursday, May 29th, 2008 at 5:38 and is filed under Capital markets, M&A, Private equity. Tagged with bain, blackstone, gso, Landmark Communications, NBC Universal, Weather channel. Edit this entry.