Private Equity
Happy early Valentine's Day, everyone... Revenge of the Wall Street Traders: Moe Tkacik reports from Wall Street's version of the Tea Parties. Leading the charge is a firm called John Thomas Financial. (Daily Finance) Scary Headlines: David Reilly is fear-mongering the President into taking action with headlines like this one: Man Up, Obama, or Make Way for President Palin: (Bloomberg) How Generous are PE Pros: Slate and PE Beat have outlined the most generous Americans in 2009 and you'd be surprised at which PE pro is ranked highest. (Slate, PE Beat) The Elusive IPO: Not as easy as for private equity as we might have thought. (Dealbook)
1 min read · 12 February 2010
As usual, we have a week’s worth of ratings actions on the debt of LBO-backed companies from ratings agencies Standard & Poor’s Ratings Services and Moody’s Investors Service. Company: Penton Business Media Holdings, Inc. Sponsor: MidOcean Partners and Wasserstein Ventures Action: Moody’s and S&P downgraded the company’s ratings to D in tandem with its Chapter 11 bankruptcy filing. Highlight: From Moody’s: “Penton has received acceptance of its prepackaged Plan of Reorganization by the requisite number of first and second lien lenders. In accordance with the terms of the Plan, the restructuring would result in the elimination of $270 million of debt (all of the second lien facility).” From S&P: “The weak operating performance raised leverage, weakened interest coverage, and reduced liquidity. We believe these factors contributed to the company's decision to file for bankruptcy protection.”
1 min read · 12 February 2010
2 min read · 12 February 2010
Advent International, Bain Capital and Berkshire Partners today announced an agreement to acquire Skillsoft (Nasdaq: SKIL), a Dublin, Ireland-based provider of e-learning and performance support SaaS solutions. The $1.1 billion deal is the year’s largest take-private, and represents a 10.66% premium over yesterday's closing price. The buyout firms secured debt financing from Morgan Stanley and Barclays Bank, which consists of a $40 million senior secured revolving facility, a $435 million senior secured term loan and a $240 million senior unsecured interim loan. That equates to a $385 million equity check, presumably split evenly between the three sponsors. On a conference call for the deal this morning, analysts and shareholders seemed unimpressed by both the price and the opportunity for a counterbid.
3 min read · 12 February 2010
Blackstone IPO Pipeline Clogs: "The worst may be over, but there is little to celebrate." That includes the below-expectation pricing on Graham Packaging. And PS., will you look at the lovely News Corp. influence on the photo choice for this story? Of course a story about IPOs has to be accompanied by photo of a hot woman. (WSJ) Love Stinks: Five parodies of the Google Superbowl ad. (Mashable) Chartjunk: How companies skirt the truth with pretty pictures. (DealZone) Silicon Valley the New SoHo? Is Silicon Valley losing its edge? One source quoted compares it to SoHo, once a cheap place to live and make art but now too expensive for artists. The mere question reminds me of the LCD Soundsystem song, "Losing My Edge," with the lyrics: "I'm losing my edge to better-looking people with better ideas and more talent. And they're actually really, really nice." And also: "I hear everybody that you know is more relevant than everybody that I know." (Dealbook) Write-Ups On The Way: Private equity portfolio valuations could rise by up to 20 percent in 2009, in a sign the buyouts industry is coming back to life after more than a year of turmoil, industry participants said. (Reuters) Ruffled Feathers: GE is taking issue with some parts of Hank Paulson's new book "On the Brink," and if Paulson's account is true, there could be legal ramifications. (Dealbook)
2 min read · 12 February 2010
t happens when you've found the perfect target, but that target isn't quite ready to sell? Most firms would simply wait. A new firm called Succession Capital Partners plans to take a more aggressive tact. Rather than sitting on its hands, Charlotte-based Succession will provide consulting services in order to create a proprietary river of family-owned businesses. Matt Malone formed the firm in May of last year after the Hunt family of Texas disassembled its LBO arm, where he was a managing director. Instead of entering the challenging fundraising market with a first-time fund, Malone started a pledge fund, gathering soft commitments from a group of high net worth individuals for one-off deals.
3 min read · 11 February 2010
Snow Whiskey! Some Wall Street traders who made it to work today hope they can't make it home. (Bloomberg) Meet Lisa Carnoy: Bank of America's "$19 Billion Woman." (WSJ) "Breast-aurant"?! Hooters is on the block. And yes, I had no idea the respectable establishment referred to itself as a "breast-aurant" but just wow. And of course, the Post could not resist a "sagging" sales comment. (NY Post) Fabulous Chaise Lounges: Dealbreaker isn't so sure John Thain will be able to handle the temptation to redecorate his new executive office at CIT. (DB) David the Raging Bull: Carlyle's David Rubenstein is speaking up once again in favor of the private equity industry. (DJ)
1 min read · 10 February 2010
2 min read · 10 February 2010
In August, the FDIC passed a stringent set of rules aimed at making it easier for buyout firms to take control of banks. The end result, however, was so restrictive that many private equity firms basically abandoned the idea altogether. Notably, FDIC chief Sheila Bair promised to review the policy six months down the road. The PEC has called the policy counterproductive, unnecessary, and a deterrent to deal-doing. Representatives of Blackstone Group, Carlyle Group and Centerbridge Partners said the policy "retains several requirements that may make it less likely that private investors will participate in acquisitions of failed depository institutions, or that will cause them to submit lower bids than they otherwise would have submitted." And they were both right. Since then, zero bank buyouts have occurred, according to Thomson Reuters.
2 min read · 10 February 2010
2 min read · 10 February 2010
