The Devils "could complete a deal by the end of next month to erase most of the team’s debt and bring in new minority owners," according to sources cited by Belson & Sandomir of the N.Y. TIMES. Sources said that team Owner Jeff Vanderbeek "has had a term sheet for new investors on his desk since the end of May." The document indicates that the investors' "infusion of cash will help pay off debt on the team and Prudential Center, and will raise working capital." It "does not list the name of the new investors." The term sheet also "promised that new investors would get a so-called put option after five years that would allow them to sell their shares in the team to a third party." In addition, the term sheet said that Vanderbeek will "invest $10 million to take an additional stake in the team, but his contribution has been modified since then." He controls 47% of the team, and while it is "unclear whether the extra shares will make him a majority owner, Vanderbeek is expected to remain the controlling owner." Since the term sheet was issued, Vanderbeek "has been able to refinance and restructure much of the total debt" of about $178M. Sources said that this part of the deal is "almost complete, which is allowing Vanderbeek’s financial adviser, Three Ocean Ventures, to move to raising equity from investors who have already been identified." The term sheet also specifies that a "compensation committee that includes the major shareholders be created to approve player contracts of more than three years that are worth more than $7.5 million after the first year." The team "declined to comment" (N.Y. TIMES, 6/21).
