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peHUB Wire: Monday, July 20, 2009Breaking Down Blackstone
- Weekly Downgrade Wrap-Up (Two More Withdrawals)
As usual, we have a week’s worth of ratings actions on buyout-backed companies from Standard & Poor’s and Moody’s Investor Services. This week was slow with two little downgrades and two withdrawals. Company: Yell Group PLC Sponsor: Apax Partners Downgrade: S&P lowered its long-term corporate credit ratings to 'B' from 'B+'. Highlights: "The downgrade reflects our concerns about the faster-than-expected deterioration of Yell's operating performance and liquidity profile, which is no longer commensurate with a 'B+' rating," said Standard & Poor's credit analyst Manuela Gabetta.
- Actis seeks Chinese partner
Investor to target Asia
- peHUB Wire: Tuesday, June 30, 2009
Random Ramblings
- peHUB Wire: Tuesday, June 30, 2009
Random Ramblings
- LBO-Backed Bankruptcy List: On Pace to Double Last Year’s Total
The first two quarters of this year witnessed 46 bankruptcy filings from companies backed by private equity firms. That places 2009 on pace to double last year's total of 49, which is right in line with some predictions from the end of last year. Download the full spreadsheet after the jump. A few notes on the list this quarter: 1. The second quarter list includes our first mega-buyout bankruptcies: Extended Stay Inc., backed by Lightstone Group, and Chrysler, backed of course by Cerberus Capital Management. These deals could be the tip of the mega-bust iceberg, but I think most would agree that they're isolated incidents. We're still waiting, with bated breath, for 2011, when the real flood of mega-buyout debt begins to mature. Until then, the mega-market bankruptcies (ones with deal values greater than $5 billion) will be limited to the most underperforming companies with the most ridiculous capital structures.
- Done deals, week of June 15, 2009
Buyout deals are disclosed transactions from June 3 to June 11, based on Thomson Reuters data
- Weekly Downgrade Wrap-Up: Where Does Portfolio Company Debt Stand?
As usual, we have a week’s worth of ratings actions on the debt of LBO-backed companies. This week we finally say goodbye to Chrysler once and for all, as the company emerges from bankruptcy and Cerberus officially loses its investment. Meanwhile, auto parts maker Dana Corp., backed by Centerbridge Capital, was downgraded and, in a curious twist, Harrah’s was upgraded. Despite the excitement around Harrahs’ successful debt offering, I’m not rushing to remove it from the “Top Ten Worst Deals of 2008” list yet. Company: Dana Holding Corporation Sponsor: Centerbridge Capital Partners LP Downgrade: Moody’s lowered the company’s corporate family rating to Caa2 and its probability of default rating to Caa1. Highlights: “On May 8, 2009, Dana commenced a tender offer for a portion of its outstanding senior secured term loan at a deep discount to par value. The company's PDR and the rating on the term loan were adjusted to Ca at that time to reflect the potential for loss to investors. With the passage of time since the May 12 target date for concluding the tender, Moody's has now repositioned the PDR at Caa1.”