Silver Lake mulls healthy dividend for TEG as sales process drags on
Silver Lake is evaluating a potential debt deal to pay itself a dividend out of Ticketek owner TEG, its entertainment portfolio company that has been the subject of an estimated $2 billion sale campaign for at least three months.
The Ticketek owner discussed a possible recapitalisation of TEG, including extracting capital, after a second round of bids was submitted earlier this month.
Amid the options assessed by Silver Lake and its investment bank Jefferies, a recapitalisation of up to $1 billion is proving a viable alternative as capital markets stabilise, people familiar with the TEG sale told The Australian Financial Review.
Tickets for Taylor Swift’s Eras tour helped Ticketek break sales records this year. AP
September is typically one of the busiest months for bond and loan deals, and the favourable conditions mean borrowers can more safely assess risk and capital costs, giving Silver Lake a chance to tack debt onto TEG and reward itself with a dividend.
Silver Lake could tap the institutional overseas term loan or high-yield bond market, private credit funds, or structure a commercial bank-led transaction.
A spokeswoman for Silver Lake declined to comment on the TEG sale.
The Goldman Sachs-advised Blackstone and Jarden-advised KKR’s effort with Qantas Loyalty were the front-runners in a possible acquisition of TEG.
Ticketek is buoyed by ticket sales for live artists such as Taylor Swift exceeding expectations. Demand for Swift’s Eras tour was so high that the website for American Express, which was offering a VIP pre-sale package, temporarily went offline in June.
Ticketing companies have cashed in on consumers yearning for live entertainment after years of cancellations.
Rival Live Nation recorded $US5.6 billion
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