NEW YORK (CelebrityAccess) — Robert F.X. Sillerman's acquisition of a controlling interest of common stock of SFX as he takes the company should not add any additional debt to SFX's balance sheet as he is proposing an all equity deal.
"This is not a leveraged buyout," said Mr. Sillerman. "I hope to use all-equity financing to fund the proposed going-private transaction. I have no plans to have the Company incur additional debt to fund the transaction."
As previously announced, Sillerman plans to offer stockholders $5.25 for each share of SFX common stock in a transaction that is worth approximately $774 million.
The deal also includes a 'go shop' provision that allows a 45 day period during which a committee of the board of directors will seek out other potential suitors. Sillerman has agreed to vote his shares in favor of a better deal, if one happens along. Sillerman currently controls 37.4% of the company's outstanding common stock. – Staff Writers