Carlyle seeks assistance for RAC

Singapore's GIC, one of Asia's more sophisticated sovereign wealth funds, is believed to be a favourite.

This is because the large equity cushion of more than 50% – commonplace in today's leverage-lite marketplace – is £520m, corresponding to nearly 10% of Carlyle's fund.

The hefty price tag – 17x 2010's earnings – was made possible by the promise of some attractively priced high-yield in the capital structure, as well as the plush equity cushion. However, less than a month after the deal was signed, the plug was pulled on the bonds, with investors concerned that the target's debt-to-EBITDA level of 5.5x was already high (the average is said to be 4.5x).

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• Topics
• Buyouts
• Restructuring
• UK / Ireland
• Belgium
• Luxembourg
• Carlyle Group
• Apax France SA