Patriarch Partners has invested $80 million into Xinhua Finance Media.
Structured as a four-year, secured convertible loan facility, the deal allows outstanding amounts to be converted to XFMedia shares at $2.24 per American Depository Share after the first year. This increases to $2.74 in the second year and $3.24 in the third year.
XFMedia’s three business groups, broadcast, print and advertising cover a wide range of assets including television, radio, newspaper, magazine, outdoor and online assets. The company is headquartered in Beijing and has offices and affiliates in cities such as Shanghai, Guangzhou, Shenzhen and Hong Kong.
The funds will be used for the expansion of XFMedia’s broadcast business, with a focus on sports. The money will only be drawn down when needed, and will pay for identified acquisitions as they are brought in, Fredy Bush, chairman and chief executive of XFMedia, said in a statement.
Earlier this January, Patriarch’s portfolio company, fire engine maker American LaFrance, filed for Chapter 11 bankruptcy protection. Patriarch, which acquired American LaFrance in January 2006, agreed to provide a $50 million revolving credit facility for the company while it evaluates strategic alternatives, according to a filing.
Patriarch was launched in 2000 by Goldman Sachs and Merrill Lynch veteran Lynn Tilton.