RPT-RLPC-Investors mull proposed changes to Boots loan

(Reuters) - LONDON, July 23 - Banks and funds are considering
proposed changes to the 9 billion pounds financing backing the
buyout of UK health and beauty retailer Alliance Boots, with
margins boosted and discounts offered across the capital
structure to counter credit market turmoil, banking sources said
on Monday.




The deal will also add an interest cover covenant to the
covenant lite loan to offer additional protection to investors
spooked by a steep sell-off in the debt markets in recent weeks,
sources told Reuters Loan Pricing Corporation.


Read more at Reuters.com Bonds News

KKR's Delay on Alliance Boots Loans Places `Moratorium' on LBOs, UBS Says

(Bloomberg) -- Delays in financing the takeover of
Alliance Boots Plc have placed a ``moratorium on large-scale
leveraged buyouts'' that may weigh on European stocks, according
to a UBS AG strategist.

Shares of companies that have benefited from bid
speculation, including Adidas AG, Smith & Nephew Plc and Reed
Elsevier Plc, ``are less likely to retain a private equity''
support to their valuations, Daniel Stillit, London-based market
analyst at UBS, wrote in a report today. All three stocks have
risen at least 13 percent this year.


Read more at Bloomberg Bonds News

UPDATE 1-Alliance Boots agrees $21 bln bid from KKR, Pessina

(Reuters) - Private equity group Kohlberg Kravis Roberts [KKR.UL] and Pessina, who is deputy chairman of Alliance Boots and its biggest shareholder, said on Friday they would pay 1,090 pence a share in cash, up from their previous offer of 1,040 pence.

This is 33.7 percent above the company's closing share price on March 8, the day before it said it had received a bid approach, and makes it Europe's biggest ever leveraged buyout.


Read more at Reuters.com Mergers News