Covenant lite-er

Private equity firm CVC has asked lenders to relax loan covenants linked to debt facilities that initially helped finance its investment in PBL Media, in return for injecting more equity into Australia’s largest diversified media group.

CVC recently pumped another A$25m into PBL Media, on top of some A$300m pledged earlier, in a move which has reduced the stake of business partner Consolidated Media Holdings to less than 10%.

According to insiders, the private equity firm has asked lenders, ANZ, BOS International, Calyon, Commonwealth Bank of Australia, Credit Suisse, Mizuho, National Australia Bank, RBS, UBS and Westpac, to agree to “covenant relief in one form or another”.

A number of hedge funds are also involved in the discussions.