Private Equity
As usual, we have a week’s worth of ratings agency actions on the debt of buyout-backed companies from Standard & Poor’s Ratings Service and Moody’s Investors Service. This week was slow—two upgrades and one default leading to one withdrawal. One upgrade, interestingly, is on a very recent deal. Last month, KKR purchased $300 million in the senior secured notes of Eastman Kodak. The deal sent Kodak’s stock price down and raised questions as to what KKR’s plan for the stagnant company would be as a debt investor. But the deal at least elicited an upgrade from Moody’s. The ratings agency upgraded Eastman Kodak's speculative grade liquidity rating to SGL-1 from SGL-2 upon the closing of the company's new debt issuance. More details below.
2 min read · 16 October 2009
Larry Summers is turning Populist: Big Finance vs. The Middle Class (Real Times Economics) In Defense of Smart Bankers: Yesterday I linked to Calvin Trillin's NYT op-ed that proclaimed the financial collapse was caused by smart people. Here is one rebuttal from Dealscape, and one defense from Felix Salmon. Private Equity Mad Libs: Here is just about any given headline about a private equity deal, fill in the blanks. "_______(deal) signifies private equity is ______(choose one: back, still dead)." Here are two from today: Brewing deal marks dawning of new PE era A Private-Equity Rebirth Is Premature Watch out: Goldman Sachs has pissed off a group of nuns. From what I can remember of Catholic school, that is the last thing you ever want to do. (Business Insider)
1 min read · 15 October 2009
1 min read · 15 October 2009
1 min read · 15 October 2009
1 min read · 15 October 2009
1 min read · 15 October 2009
1 min read · 15 October 2009
2 min read · 15 October 2009
Calvin Trillin: Smart guys caused the financial collapse. "When the smart guys started this business of securitizing things that didn't even exist in the first place, who was running the firms they worked for? Our guys! The lower third of the class!" (NYT) RIP: Bruce Wasserstein has died. (WSJ) Taking Credit: David Rubenstein admits that private equity played a role in the crisis. Easy to say now that, according to him, private equity is "back." (WaPo) Just for Fun: Anyone out there need a chart intervention? (Economix) Just so you know: Anthropologists (one, at least) think the modern man is a wimp. "Any Neanderthal woman could have beaten former bodybuilder and current California governor Arnold Schwarzenegger in an arm wrestle." (Reuters)
1 min read · 14 October 2009
Here are some potential target ideas, rumored or official, to jumpstart your deal pipeline. Our sources are various news reports and the Buyouts “Seeking Buyers” list. For prior lists, see below, and send any additions my way. IMG Media, a media conglomerate owned by Ted Forstmann, hired Raine Group to sell Tiger Aspect Productions and Darlow Smithson Productions, either separately, or as a package. Forsys Metals Corp. has hired Morgan Stanley & Co. as exclusive financial advisor to assist it in exploring strategic alternatives. (Read more) Bing Group, a steel supply company based in Detriot, is seeking buyers. The company has suffered from slow auto sales and financial struggles from its customers, the auto companies. Rubio's Restaurants Inc is in play after receiving an unsolicited offer from an investor group to buy the company for about $80 million. Levine Leichtman Capital Partners IV LP offered $8 per share.
3 min read · 14 October 2009
