BERTELSMANN ZEROES
IN ON CDNOW
Bertelsmann, parent company of BMG Entertainment, is one step closer to finalizing its purchase of online music retailer CDNow, receiving German antitrust approval of the $117 million deal.
Bertelsmann plans to finance the acquisition with proceeds from three existing credit facilities; the company estimated the total amount of funds needed to consummate the offer and cover related expenses at about $152 million.
The company's first financing arrangement is an $80 million long-term revolving credit facility with Commerzbank Aktiengesellschaft and Four Winds Funding.
The second arrangement is a $50 million credit facility with Deutsche Bank, while the third is a $50 million long-term revolving credit facility with Bayerische Landesbank. No party in the U.S. has officially objected to the deal.
