Reuters: Private Equity: RLPC-NCP gets debt in gear as court approves restructure

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RLPC-NCP gets debt in gear as court approves restructure Apr 30th 2012, 13:59 By Claire Ruckin LONDON, April 30 | Mon Apr 30, 2012 9:59am EDT LONDON, April 30 (Reuters) - National Car Parks received approval in the High Court for a restructuring that will see lenders wipe out 500 million pounds ($811.87 million) of debt in return for a 15 percent stake in the business, banking sources said on Monday. NCP will now have debt of around 150 million pounds and owner Macquarie has agreed to inject an additional 50 million pounds of new money into the business, massively reducing its debt load and leverage. "A load of debt has been written off so it should operate more efficiently and become a viable and strong business again," one of the banking sources said. NCP declined to comment. NCP received over 75 percent lender approval for the restructuring to take place and National Australia Bank, Japan's Mizuho, Royal Bank of Canada and Lloyds Banking Group were part of a lender steering committee. A restructuring was dependent on NCP obtaining approval for a rent reduction from its main landlord, Israeli investment group Delek, which controls 59 percent of Powerfocal - a company which leases 127 car parks to NCP. Delek agreed to lower rent by 9 million pounds to 40 million a year as part of the restructuring. Macquarie acquired the car parks operator from 3i for $1.5 billion in 2007, backed by 500 million pounds in primary loans and additional debt in swap costs. NCP has suffered from expensive rent and a decline in customers as consumers have tightened their belts in the economic gloom. Link this Share this Digg this Email Reprints

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