The $23 billion loan backing Ontario Teachers' Pension Plan, Providence Equity Partners Inc. and Madison Dearborn Partners
LLC's proposed buyout of Canadian telecom giant BCE Inc. is the big kahuna of loans still in the pipeline.
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Accordingly, the looming financing, which was expected to hit the market in the first quarter, is drawing more scrutiny. However, a lawsuit by Canadian bondholders, who claim they have been oppressed by the adverse effect the new debt will have on existing bonds, has scrambled the timeline somewhat. Sources note that a ruling by a Quebec court is expected in coming days, but the appeal process could drag the case out for some weeks. Most recently, bondholders and BCE agreed to an expedited appeal process, with a final ruling expected within 30 to 90 days after the appeal is filed. If bondholders lose, financing arrangements will be finalized soon after. The sponsors have said publicly, however, that they won't be able to complete the LBO if the bondholders win.
- Vipal Monga
