Warburg Pincus related stories
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Canada PE braces for double dipSome PE investors shelving IPO plans for their portfolio companies until the outlook improves
- Weekly Downgrade Wrap-Up
As usual, we have a week's worth of ratings actions (mostly downgrades) on the debt of LBO-backed companies from ratings agencies S&P and Moody's. This week was obviously slow on account of the holiday, with only two companies getting ratings changes. Moody's has doubts about whether GTCR's Graceway Pharmaceuticals will get its drug Aldara will be approved on schedule. Meanwhile S&P did the obligatory ‘SD' for its out-of-court debt-equity swap. Company: Graceway Pharmaceuticals Sponsor: GTCR Golder Rauner LLC Action: Moody's lowered the company's corporate family rating to Caa1 from B3 and the probability of default rating (PDR) to Caa1 from B3. Highlights: The ratings downgrade primarily reflects new uncertainties related to whether Graceway's life cycle management plans for Aldara will be successful based on lack of approval for Graceway's new lower-dose version.
- Executive moves, week of Nov. 23, 2009
Hires and promotions at Braemar, Altira, Advent and other VC and PE firms
- Weekly Downgrade Wrap-Up
As usual, we have a week’s worth of ratings actions on the debt of LBO-backed companies from S&P and Moody’s Investors Service. This week was a busy one for downgrades and debt exchanges, with eight downgrades and one upgrade. Company: Energy Future Holdings Corp. Sponsor: Kohlberg Kravis Roberts & Co. Action: S&P raised its corporate credit rating on EFH and its unregulated subsidiaries TCEH and EFCH to 'B-' from 'SD' and assigned a 'B–' corporate credit rating to EFIH. This rating action follows EFH's recent announcement that it and its subsidiaries have completed the exchange of its $357 million of various securities within the entire capital structure. Highlight: “These ratings reflect EFH's consolidated creditworthiness post-exchange.” The outlook on these corporate credit ratings is negative, reflecting weak financials and increasing refinance risk.
- The End of Transaction Fees?
Tom Danis of RCP Advisers suggested yesterday that one reason Charlesbank Capital Partners had an oversubscribed fundraise was that the new vehicle’s terms gave 100% of transaction fees to limited partners (rather than a split). It wasn’t so much the expected dollars, Danis said, but more that Charlesbank was responding to what is broadly seen by LPs as a fairer alignment of interests. Handing 100% of transaction, portfolio monitoring and other fees is a key tenant of the ILPA guidelines proposed earlier this year. But here is my question: If most firms adopt the ILPA guidelines on fees, will that end the taking of fees? In other words, will GPs still have incentive to pilfer from portfolio companies if they can’t stuff any of it in their back pockets?
- peHUB Wire: Friday, November 20, 2009
Random Ramblings
- peHUB Wire: Friday, November 20, 2009
Random Ramblings