Blackstone, the private equity group, is advising its rival Terra Firma on a plan to issue high-yield bonds to repay Citigroup’s £2.6bn of loans to music group EMI, one of the US bank’s biggest single exposures. JPMorgan and Morgan Stanley may underwrite the issue. Citi has already been approached by Guy Hands, chairman of Terra Firma, with a proposal for the private equity group to inject £300m of equity into EMI. The buoyant high-yield bond market could be an escape route for companies bought by private equity during the debt bubble that are facing concerns on how to repay about $600bn of loans maturing over the next five years.

This entry was posted by Paul Murphy on Friday, July 17th, 2009 at 5:33 and is filed under Private equity. Tagged with citigroup, emi, guy hands. Edit this entry.