HMV lenders could take shares as new loans incentivise prepayments

UK music and entertainment retailer HMV, which recently sold bookshop chain Waterstones, has agreed £220m of drawn and undrawn loans with its lenders to replace its £240m revolving credit facility. The agreement is structured to incentivise HMV to pay back a portion of its debt early, and will allow lending banks the option to take a 5% share in the group.