Friday, April 3, 2009

Tom Hicks Defaults On $525 Million In Loans

FINalternatives reports that in a startling development, billionaire Tom Hicks, founder of HM Capital (f/k/a Hicks Muse Tate), and subsequently left the private equity firm in 2006, has defaulted on $525 million of loans. According to FINalts "Hicks Sports Group, which owns baseball’s Texas Rangers and hockey’s Dallas Stars, failed to make its interest payment on $525 million in syndicated bank loans on Monday. The group is now in talks with its lenders about a forbearance."

According to the source, who has seen documents relating to the loans, Hicks
defaulted on a $350 million bank term loan, $100 million second-lien loan and a
$75 million revolving credit facility. A spokesman for Hicks Sports declined to
Allegedly the loans were secured by the former PE tycoon's extensive sport assets, which include the Texas Rangers (amusingly the Skull and Crossbones alumnus (and fmr president), W, a long-time friend of Hicks will throw the opening pitch Monday), the Dallas Stars, and a 50% stake in soccer club Liverpool.

Next up on default watch: loans secured by Leon Black's extensive art collection at 760 Park Avenue. Sphere: Related Content
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