Incisive Media, lenders ink refinancing agreement; ALM to be separated

By Caroline Salls

Pittsburgh, Sept. 8 - Incisive Media plc has reached an agreement with its principal lenders under which the lenders will become the company's majority shareholder, according to a company news release.

Although the group's U.K. and U.S. businesses continue to generate operating profits despite the impact of the downturn in the global economy on the end markets they serve, Incisive said the existing debt structure is unsustainable, necessitating a financial restructuring.

As a result, the company said it has reached the agreement with its principal lenders to address the financing issues arising from the debt finance for the acquisition of Incisive Media by Apax Partners in December 2006 and subsequent acquisition of the group's ALM business in August 2007.

According to the release, these deals were structured as separate transactions involving a syndicate of lenders on the Incisive Media side and a bilateral deal with the Royal Bank of Scotland plc on the ALM side.

In addition to the lenders becoming Incisive's majority shareholders, the ALM business will also be restructured under the agreement.

Since the packages remained separate, the company said the restructuring will result in Incisive Media and ALM being separated and operated on a stand-alone basis, each with their own financing, board and management.

Completion of both transactions is subject to finalization of legal documentation and receipt of competition clearance.

"Although ALM will be separated from Incisive Media, today's announcement has underlined the banks' confidence in the future of our company and their support of the existing management team, our people and our brands," Incisive Media chief executive officer Tim Weller said in the release.

"The restructuring is extremely positive as it has significantly strengthened our balance sheet and will give us the ability to take advantage of the opportunities that lie ahead."

Incisive Media is a London-based business information provider.

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