Cirque du Soleil Discusses Loan With Co-Owner TPG
Cirque du Soleil Discusses Loan With Co-Owner TPG
(Bloomberg) -- Cirque du Soleil Entertainment Group is in talks with its private equity backer TPG regarding a loan after the coronavirus pandemic forced it to close shows globally, bringing the famed live performance brand to its knees.
The Montreal-based company is discussing a $50 million loan secured by Canadian intellectual-property assets, according to people familiar with the matter. The borrowing would give the company time to explore options including potential government assistance, the people said, asking not to be identified because the matter is private.
Representatives for Cirque and TPG, its majority owner, declined to comment.
Entertainment companies that depend on large crowds were among the first business casualties of the virus. Cirque announced temporary layoffs of 4,679 employees on March 19 after shutting down 44 productions to comply with government orders around the world.
The company, which grew from a troupe of Quebec street performers into a global entertainment giant, is also in talks with Caisse de Depot et Placement du Quebec for rescue funding, Bloomberg previously reported.
Cirque, which has shows in Las Vegas including “Mystere” and “Michael Jackson ONE,” needs to address about $900 million of senior loans.
S&P Global Ratings cut Cirque’s rating to D on April 3. The company failed to make principal and interest payments due March 31 on its first-lien credit facility and an interest payment on its second-lien facility. The first-lien loan is quoted at just over 52 cents.
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