Mortgage News
Banks take majority stake in Foxtons and Alexander Hall
Alexander Hall has said it will be unaffected following a refinancing deal agreed by Foxtons’ owner BC Partners which hands a majority stake of the estate agent to its lenders.
Bank of America Merrill Lynch and Japanese bank Mizuho, which backed BC Partners’ leveraged buy-out of Foxton in 2007 with £260m in loans, will jointly own a majority of the company’s equity.
The refinancing deal also will see debt at Foxtons slashed by 60% from £300m to £120m. BC Partners has agreed to inject £50m in fresh equity in order to remain the largest minority shareholder. Foxtons will have as much as 20% percent of the equity.
Andy Pratt, chief operating officer of Alexander Hall, said: “It has no effect on the trading of Alexander Hall or Foxtons. We see it as a positive move.”
In a statement, Michael Brown, chief executive officer of Foxtons, said: “Our strengths and future potential lie behind the capital reorganisation, and we are delighted we will continue to have the support of BC Partners and our banks going forward.”
In a statement, BC Partners said: “Foxtons confirms that, subject to FSA approval, it has agreed a consensual capital reorganization with its existing banks and shareholders. This reorganization delivers a sound balance sheet to complement Foxtons’ strong trading performance and supports the company in continuing to build its position as London’s leading estate agency.”
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