Target name: All3Media

Target nation: UK

Date announced: 01/08/06

Deal type: LBO

Acquirer (s): Permira

Total value: £320m

Mandated arranger (s): Bank of Scotland Corporate and Royal Bank of Scotland

Financing: £237m

Permira has bought a majority stake in independent UK production company All3Media from Bridgepoint, which backed an MBO of the company in 2003. Permira’s purchase values the company, which produces Richard and July and Holyoaks, at £212m, with an enterprise value of £320m. Bank of Scotland Corporate and Royal Bank of Scotland are arranging the £237m debt facilities supporting the acquisition. The £173 million of senior debt comprises a £34m seven-year term loan A with a margin of 225bp over Libor, a £51m eight-year B loan at 250bp, a £51m nine-year C loan at 3%, a £17m seven-year revolving credit facility at 225bp, a £15m seven-year capex facility at 225bp and a £5m 365-day production facility at 150bp. Subordinated debt comprises a £20 million nine-and-a-half-year bullet second lien facility paying 5% and a £44 million ten-year bullet mezzanine loan paying 4% – 5.25%. All3Media was formed from the acquisition of the Chrysalis TV Group by Bridgepoint and Management in August 2003 and is now the UK’s leading independent production company. The Company includes eight individual TV production companies, all with their own well-known TV brands and covering all major programme genres. All3Media also includes a leading UK talent management agency and its own international distribution company. All3Media generated revenues of £216m in 2006 and has grown its pro forma like-for-like EBITDA by 30% pa since in 2003. The group has revenue stability and visibility with circa 50% of its revenues coming from perennial programmes with multi year contracts and therefore has 50% of gross profit already confirmed at the start of each financial year.