Sun Capital and TDR's Pearl Group secures £500m equity injection

UK-based life assurer Pearl Group, jointly owned by private equity firms Sun Capital and TDR, has secured a £500m capital injection from Cayman Islands-based investment holding Liberty Acquisition Holdings.

Liberty will take a 60% stake in the business, leaving the private equity backers with a 30% holding.

The company's lenders, led by Lloyds TSB and RBS, will take the remaining 10% of the equity, for which they are expected to write down the value of the company's £3bn debt by around £400m. The equity stake comprises, in part, a £75m convertible bond.

In April, Pearl announced that it would pursue a debt restructuring and capital raising. Last year, the company took on a large amount of debt when acquiring Clive Cowdery's Resolution in a £5bn deal.

The recapitalisation is still subject to approval from the bank's credit committees as well as Liberty's shareholders.

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