TI Automotive borrows to pay dividends
The move comes after a planned sale of TI to private equity firms Bain Capital Partners and Pamplona Capital failed
TI Automotive will borrow USD1.25 billion to refinance the company's debt, as well as make a USD435 dividend payment to its hedge fund owners, according to a Bloomberg report. JPMorgan Chase is arranging the loan, and is looking for other lenders to join in the debt, sources told the financial news outlet. The move comes after a planned sale of TI to private equity firms Bain Capital Partners and Pamplona Capital failed, and will increase TI's debt levels to 3.5 times its earnings before interest, tax, depreciation, and amortisation (EBITDA) from 2.4 times currently.
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