Bloomberg News

Wood Mackenzie Said to Receive Lender Approval for Loan-Rate Cut

March 06, 2013

Wood Mackenzie Ltd., an energy advisory company, received approval from lenders to lower the rate on loans used to finance last year’s buyout of the company, according to three people with knowledge of the deal.

A 315 million-pound ($475 million) term loan B will pay interest at 450 basis points more than the London interbank offered rate, down from 575 basis points, said the people, who asked not to be identified because the terms are private. Libor, a rate banks say they can borrow in dollars from each other, will have a 1 percent floor.

The margin on the 30 million-pound revolving credit line and an 80 million-pound term loan A will be cut by 25 basis points to 475 basis points, they said. A basis point is 0.01 percentage point.

Wood Mackenzie, owned by private-equity company Hellman & Friedman LLC, follows Iceland Foods Ltd. and Global Blue in getting European investors to approve lower interest rates. In the U.S., banks have reduced rates paid on $91 billion of loans this year from $72 billion in 2012, according to Standard & Poor’s Capital IQ Leveraged Commentary & Data.

The maturity of Wood Mackenzie’s loan portions won’t change, and the interest rate on the company’s 170 million pounds of mezzanine debt also won’t alter.

Nomura Holdings Inc. coordinated the request for the Edinburgh-based company with Morgan Stanley also arranging the deal.

Charlotte McMullen, a spokeswoman for Hellman & Friedman, didn’t immediately respond to a telephone call and e-mail requesting comment on the deal.

To contact the reporters on this story: Julie Miecamp in London at jmiecamp@bloomberg.net; Patricia Kuo in London at pkuo2@bloomberg.net

To contact the editor responsible for this story: Faris Khan at fkhan33@bloomberg.net


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