Tragus Holdings Ltd., the U.K. restaurant company owned by Blackstone Corp. (BX), will ask lenders to relax terms on 230 million-pounds ($364 million) of loans to stave off a covenant breach in May, the Sunday Telegraph said.
The company, which owns the Cafe Rouge chain, will on March 6 offer banks a fee of about 10 million pounds and higher interest payments in exchange for looser conditions on its debt- leverage ratio, the newspaper said, without saying where it got the information.
Tragus doesn’t have to extend the maturity of the loan facility and is acting to ensure an appropriate capital structure for continued growth, a spokesman told the Telegraph.
London-based Blackstone spokeswoman Helen Winning didn’t immediately respond to a phone call and voice mail seeking comment.
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