WSJ: Terra Firma Sinks Another $45 Million Into EMI

Authored by Mark Hefflinger on May 29, 2009 - 9:28am.

New York - Private equity firm Terra Firma has provided an additional $45 million in new financing to struggling major record label EMI Group, the Wall Street Journal reported on Friday, citing people familiar with the matter. Terra Firma, which is run by financier Guy Hands, acquired EMI Group in 2007 for $4.7 billion.

The firm provided about $26 million to EMI in September 2008, and has been engaged in a company-wide restructuring effort since the acquisition.

The new funding is reportedly being provided so that EMI avoids breaching covenants on a multibillion-dollar loan from Citigroup, sources told The Journal.

The Journal also reports that EMI Music CFO Chris Kennedy, who was appointed in April 2008, has stepped down to take another position "overseeing the company's investments."

Kennedy will be replaced in the interim by Terra Firma's Andrew Chadd.

http://www.terrafirma.com

http://www.emi.com