Blackstone help for Terra Firma

TERRA Firma, Guy Hands’ private equity firm, is being advised by US rival Blackstone on plans to issue bonds to pay off loans accrued by its music group EMI.

All or part of the £2.6bn of loans, owed to US banking giant Citigroup, might be paid off via a bond issue backed by JPMorgan and Morgan Stanley, a source said last night.

Under the plans, high yield bonds would be issued as a way for Terra Firma to offload the debts, which carry strict performance and financing conditions, while remaining in control of the firm’s equity.