Talent agency YMU finds itself in financial turmoil with nearly $90 million in loan debt.
The UK-based talent management agency YMU Group (You, Me & Us), which has a transatlantic music division, is therefore evaluating options for a financial restructuring Sky news. The company was reportedly locked in talks about its finances following a “slump in profits exacerbated by the pandemic.”
Sky reports that YMU lenders Permira Credit and Lloyds Banking Group, via sources in London’s financial district, “engaged AlixPartners a few weeks ago to conduct an independent business audit of the agency”. YMU reportedly owes around US$87m (£70m) to Permira Credit and Lloyds Banking Group.
While a source close to YMU said there was no cause for concern about the company’s future, Sky’s reports suggest that a new chief restructuring officer could lead a restructuring process at YMU and “is likely to attract takeover interest from industry peers would pull”. ”
According to YMU’s latest available accounts, filed with UK Companies House, the company had net debt of £74.7million, “mainly due to the group’s long-term borrowings which cannot be repaid until 2025 and beyond”.
“Under the credit facilities with Permira Credit Solutions (…) and Lloyds Bank, the company has issued a mutual guarantee for the assets of the company and certain other companies within the group,” YMU wrote in its 2021 annual report.
“The Mutual Guarantee relates to borrowings by YM&U Group Services Limited consisting of a £38,443,000 (GBP) loan facility and a drawn £15,242,000 acquisition facility at Permira and a £5,888 loan facility £,000 and $12,000,000 at Lloyds Bank. and a £4,000,000 revolving credit facility.”
The Permira Loan Facilities are repayable on September 28, 2025, while the Revolving Credit Facility and the Lloyds Bank Facility are repayable on March 28, 2025.
YMU works with talent across music, sports, arts and entertainment and is majority-owned by private equity firm Trilantic. The company was formed in 2018 after the UK-based James Grant Group, then partially owned by Metric Capital, sold a majority stake in their company to Trilantic and rebranded it YMU.