Carphone plans £250 million term loan for Best Buy Europe purchase

By Sara Rosenberg

New York, April 30 - Carphone Warehouse Group plc plans on getting a new £250 million four-year amortizing term loan to help fund its acquisition of a 50% interest in Best Buy Europe from Best Buy Co. Inc., according to an 8-K filed with the Securities and Exchange Commission on Tuesday.

With this purchase, Carphone Warehouse will become the sole owner of Best Buy Europe as it already owns 50% of the company.

The sale price of £500 million is comprised of £420 million in cash and £80 million in Carphone Warehouse stock subject to a 12-month lock-up restriction.

In conjunction with the transaction, Best Buy has agreed to pay Carphone Warehouse £29 million in satisfaction of obligations under existing agreements.

Closing on the transaction is expected in June, subject to shareholder approval.

Carphone Warehouse is a London-based telecommunications retailer.

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