Reed staples finance to sale

In order to sell trade magazine publisher Reed Business Information as one entity, Reed Elsevier plc is organizing banks to loan a potential buyer around $1.5 billion, the Telegraph is reporting. Investment banks expected to provide stapled finance include: UBS, BNP Paribas SA, J.P. Morgan Chase & Co., GE Capital, Bank of Ireland Group and Lloyds TSB.

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Reed has been facing pressure to break up the business magazine division in order to sell it due to a lack of interest in the auction, especially from private equity firms, which are having difficulty raising the necessary debt for leveraged buyouts because of the credit crisis.

Reed Business Information generated £906 million ($1.8 billion) in sales last year, Reed Elsevier said when it announced the auction in February. The parent is reportedly seeking $2 billion for the unit. UBS is the lead adviser for the deal. - Maria Woehr

See the Telegraph: Reed offers loan to aid magazines sale
See paidContent: Desperate Times: Reed Elsevier May Offer Loan to RBI Buyer; One-Piece Sale Preferred Again
See Dealscape: Reed Elsevier rejiggers Reed Business Information auction

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