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Endemol nears debt deal

Formats giant Endemol has reached an agreement with a “significant” number of lenders to lower its debts following a protracted period of talks.

Two-thirds of Endemol’s lenders are onboard a “milestone” agreement in principle to restructure the company’s finance. This would bring its debt down to a figure C21 understands is around €500m (US$644m). The current figures sits at about €2.8bn.

It is understood only Endemol joint owner Mediaset and Barclays Bank are yet to concur to the deal, though there are enough parties in agreement for it to go ahead without their blessing.

Italy-based group Mediaset previously put forward its own restructuring plan with private investment group Clessidra and two bids from Time Warner, the latter of a €1.3bn all-cash offer, were turned down in favour of a debt-for-equity deal.

“We are delighted that the majority of our lenders have in principle agreed to the proposed commercial restructuring terms and we can now enter into the final part of the process. A solution that puts Endemol on a strong financial footing for the future is now imminent,” said Endemol global president Marco Bassetti and chief financial officer Just Spee in a statement.

Talks will continue over coming weeks to finalise the agreement, which will see the stakes of Mediaset and joint owners John de Mol-owned Cyrte Investments and Goldman Sachs diluted as other banks and hedge funds take equity shares in return for their roles in the restructure.

Endemol’s lenders include Apollo Management, Centrebridge, Providence Equity Partners and RBS.

“Without the constraints of an onerous capital structure, we will be able to pursue exciting growth initiatives and build upon the solid progress that the group has made in 2011 as we focus on and develop the creative strategy which lies at the heart of our business,” added the Endemol management.

Production giant Endemol counts formats such as Big Brother, Deal or No Deal, The Money Drop and Wipeout among its catalogue and has numerous production outlets across the world. It also has a sales wing, Endemol World Distribution.

Endemol said today it made “significant progress” in 2011 by outperforming budgets to the tune of about 10%. Earnings before interest, tax, depreciation and amortisation are understood to have been €150m last year.

The current owners paid €3.4bn to buy Endemol in 2007. Previous owner Telefonica had paid €5.5bn to acquire it in 2000.

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