Foxtons loan deal hands control to lenders
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A refinancing deal has reportedly been agreed by Foxtons’ owner BC Partners which hands control of the estate agent to its lenders.
Private equity firm BC Partners acquired Foxtons back in May 2007, in a deal thought to be worth £360m to the estate agent’s founder Jon Hunt.
A report in the Financial Times says that BC Partners is injecting under £50m of new equity into Foxtons as its largest minority shareholder.
Bank of America and Mizuho, the lenders that backed the acquisition deal, will get a majority stake in the business in return for writing off Foxtons’ debt from £300m to £120m.
Andy Pratt, chief operating officer of Foxtons’ mortgage division Alexander Hall, says: “It is only good news. Obviously it’s been a situation to resolve, and now it’s been resolved.
“It has no material impact on the trading of either Foxtons or Alexander Hall.”
He adds: “We all take this move as a positive as it shows the lenders’ continuing commitment to the sector.”
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