Citigroup has taken over EMI, the music label of The Beatles, Pink Floyd and dozens of other acts, from London private equity firm Terra Firma.
The agreement eliminates some uncertainty over EMI's future, allowing Citigroup time to prepare it for a possible sale. Struggling because of weak album sales, Terra Firma Capital Partners Ltd. had been nearing default on roughly 3.4 billion pounds ($5.48 billion) of borrowings taken on to buy the label in 2007. Citigroup Inc. has agreed to cut the debt by 65 per cent to 1.2 billion pounds.
EMI says the deal leaves it with more than 300 million pounds of available cash.