Seat Pagine Gialle in €1.3bn debt-for-equity swap

Seat Pagine Gialle has converted €1.3bn of bonds into shares, in a deal that sees bondholders take a 90% share in the indebted firm. The bonds had previously been held in holding company Lighthouse, but new shares will be merged into Seat Pagine Gialle. The current owners will retain a 10% stake.

The firm currently has €2.67bn worth of debt. All members of the firm's board of directors have resigned from office.

Previous funding
In 2003, a consortium of private equity investors formed by BC Partners, Permira, CVC and Investitori agreed to acquire a majority interest in newco New Seat from Telecom Italia, for a consideration of €3.03bn. BC Partners exited the firm in 2008.

Company
Founded in 1925, Seat Pagine Gialle is a business directory that publishes business information and advertisements. Publishing platforms include print, online and mobile.

The firm reported revenues of €367.3m for the six months ending 30 June 2012 in Italy, a 3.2% decrease on the previous half year. This decrease is attributed to falling advertising spending from Italian SMEs. Consolidated revenues totalled €451.4m, up 5.3%.

Online publishing is the firm's fastest growing source of revenues. The company employs around 5,000 members of staff.

People
Hardy McLain is a managing partner at CVC and worked on the original acquisition of Seat Pagine Gialle in 2003.

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• Topics
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