TDC buys back its own debt; causes stir

TDC, the Danish telecom giant owned by Kohlberg Kravis Roberts & Co, Apax, Blackstone, Permira and Providence Equity Partners, has completed a debt-buy back of EUR200m.

By doing so TDC has created tensions with its lenders that supplied the debt package at the time of the buyout in 2005. The lenders argue that the debt buy-back at 90-95 cents to the Euro is a breach of the original loan agreement. However, according to press reports the private equity consortium is due to challenge this claim.

This move has left other private equity firms keen to do the same. The weak debt market has made private equity firms more creative in finding ways to buy back company debt to delever their portfolio companies at a discount.

• Tweet  
• Facebook  
• LinkedIn  
• Google plus  
• Send to  

• Topics
• Industry
• Nordics
• Technology