UK - Oaktree in Countrywide talks

Apollo Advisers delisted Countrywide in a deal valued at more than £1bn in May 2007. The company's debt is currently thought to stand at around £740m, with the new investment reducing this by approximately three quarters.

As a result of the restructuring, the lenders of a £100m revolving credit facility would be paid back in full, while the holders of Countrywide's £475m of secured bonds would have to write off their claims in return for a 35% stake in the new group and £175m in new bonds. Approximately £170m of lower ranking and unsecured bonds, which were issued to fund the takeover in 2007, would be wiped out and holders would get a 5% stake in exchange.

A £75m cash injection would also be provided by Oaktree and Apollo, with some funds provided by Alchemy Partners' Special Opportunities fund and hedge fund Polygon. The investors would hold the remaining 60% of company equity, with Oaktree emerging as the largest shareholder in the group following the transaction.

In 2006, Countryside reported operating profits of £92.2m on turnover of £654.2m and was operating out of 1,171 agency branches.

The deal would mark the first investment from Oaktree's OCM European Principal Opportunities Fund II, a EUR 1.8bn vehicle that closed at the end of 2008.

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