Sources who knew the deal said that Pret A Manger, a coffee and sandwich chain, was able to raise a new GBP375 million or US$568.5 million loan to help refinance the company's existing debt. The company plans to pay an estimated GBP150 million dividend to Pret A Manger shareholders. Bridgepoint, a private equity firm, acquired Pret in 2008 in a transaction backed by GBP220 million worth of debt. Bridgepoint decided last June to get value out of Pret by conducting a much-needed dividend recapitalization. A dividend recapitalization is a financing process that will increase a certain company's debt, of which will allow a payout to the company's shareholders.
From the GBP375 million of new loans moved, GBP150 million will be paid to the company shareholders in the form of dividends. Shareholders include Pret A Manger management, Bridgeport and the Pret A Manger founders.
The private equity firm recently carried out an estimated GBP300 million dividend recapitalization on Infront Sports & Media, the firm's sports marketing company. The recapitalization refinanced the company's outstanding debt and paid an estimated GBP160 million as a dividend.
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