HPS and Oaktree seize Hollywood supplier MBS in debt-for-equity deal
What's the deal? Private credit investors HPS Investment PartnersDealroom has a profile for this one. Try Dealroom → and Oaktree Capital ManagementDealroom has a profile for this one. Try Dealroom → have taken control of production equipment supplier MBS GroupDealroom has a profile for this one. Try Dealroom → after the company defaulted on its debt, according to the Financial Times.
The terms: The restructuring includes a further $40 million of funding from creditors to support operations and finance a return to growth. HPS, which is part of BlackRock, and Oaktree are among the creditor group that now controls the business.
What does MBS do? MBS supplies lighting equipment and other production infrastructure to more than 600 sound stages worldwide, including New York's Silvercup StudiosDealroom has a profile for this one. Try Dealroom → and Los Angeles' Television CityDealroom has a profile for this one. Try Dealroom →.
What changed hands? The deal ends the ownership of Hackman Capital PartnersDealroom has a profile for this one. Try Dealroom → and Affinius CapitalDealroom has a profile for this one. Try Dealroom →, which bought MBS from CarlyleDealroom has a profile for this one. Try Dealroom → for $650 million in 2019.
Why now? MBS has faced mounting financial pressure as major entertainment companies cut production spending since the streaming boom began to unwind. The company and Hackman Capital had been working with restructuring adviser AlixPartnersDealroom has a profile for this one. Try Dealroom → on cost reductions and a debt restructuring, with recapitalisation talks beginning in 2025.
The signal: The takeover shows how Hollywood's prolonged slowdown is squeezing the businesses that supply film and television production, not just the studios. It also underlines how private credit lenders are increasingly ending up as owners when leveraged deals unravel.
Read more: Private Equity Wire · Financial Times
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