Cirque du Soleil Enters into New Purchase Deal with Secured Lenders

Posted on 07/16/2020

Montreal-based Cirque du Soleil Entertainment Group entered into a stalking horse purchase agreement with its first-lien and second-lien secured lenders. Cirque has US$ 1.1 billion in debt across first-lien and second-lien creditors. The deal allows the creditors to acquire the Cirque’s assets while largely cutting down the company debt. The agreement sets aside US$ 20 million for affected employees and keeps the company’s head office in Quebec. Catalyst Capital Group Inc led the secured lenders and will invest up to US$ 375 million into Cirque du Soleil. The creditor group also includes asset managers BlueMountain Capital and Sound Point Capital Management LP and others.

Cirque du Soleil has slashed about 95% of its workforce and suspended shows due to the COVID-19 pandemic. The creditors’ agreement replaces an earlier deal with Cirque shareholders including TPG Capital and Fosun International Ltd which included debt financing from a Quebec government unit.

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