As usual, we have a week’s worth of ratings actions on the debt of LBO-backed companies from ratings agencies Moody’s Investors Service and Standard & Poor’s Ratings Services. Mixed bag this week, with a handful of downgrades, one upgrade and two withdrawals, one for "business reasons," which can mean any number of things, including the company not liking its rating. To this I say, 'lame.' Company: Wastequip Inc.
Sponsor: Carlyle Group and Odyssey Investment Partners
Action: Moody's lowered the company’s corporate family and probability of default ratings to Caa2 from Caa1. In addition, the ratings on the senior secured credit facility and term loan were lowered to B3 from B2.
Highlight: ‘The ratings downgrade reflects Moody's view that revenues and earnings will remain at relatively low levels and that financial leverage will remain elevated over the near term.”
LONDON (Reuters) – Blackstone is planning to sell a stake in travel services provider Travelport sized at $2 billion equivalent, a source close to the deal said, part of an emerging trend of private equity sales. The initial public offering, expected early in the New Year, will be listed on the London Stock Exchange and is […]
Airvana Inc. (Nasdaq: AIRV), a Chelmsford, Mass.-based provider of broadband network infrastructure, has agreed to be acquired for approximately $530 million, or $7.65 cash (23% premium to yesterday's closing price). The buying consortium includes S.A.C. Private Capital Group, GSO Capital Partners, Sankaty Advisors and ZelnickMedia.
NEW YORK (Reuters) – Two private equity-backed companies faced a cool reception on Wall Street on Thursday, as investors held steady in one but pulled out of the other. Shares of Kraton Performance Polymers Inc (KRA.N), which makes compounds used in everything from disposable diapers to razor blades, opened at $13.50 on the New York […]
Linsalata Capital Partners has acquired Spartan Foods of America Inc., a Spartanburg, S.C.-based maker of pizza and pancake products under the Mama Mary's brand. No financial terms were disclosed, except that Golub Capital provided a $20.5 million senior debt facility and $500,000 equity co-investment.
SAO PAULO (Reuters) – International Meal Co, the Brazilian restaurant chain controlled by U.S. private equity fund Advent, put off indefinitely plans to go public in Brazil due to weak demand, the International Financing Review said on Thursday, without saying how it got the information. The initial public offering was slated to price later on […]
NEW YORK (Reuters) – First-round bids for Metro-Goldwyn-Mayer will come in later than initially expected because negotiations over confidentiality agreements have slowed down the sale process, sources familiar with the matter said on Thursday. MGM, the famed film studio that said in November it was exploring a potential sale, has sent out a sales prospectus […]
Survey time! Last year peHUB readers participated in Semaphore's Confidence Survey, which tests PE sentiment in areas like income and confidence in their colleagues and managing partners. Highlights from last year's survey include one respondent's bluntly saying "PE is dead and I wish my boss were too". Yikes. To participate this year, go here. Call a Spade a Spade: Terra Firma has filed a lawsuit against Citigroup for talking the firm into the EMI deal. Felix Salmon calls it "slightly batshit." (Reuters) Eating Our Words: We already looked at some private equity false alarms, but BusinessWeek has done a similar story with a broader focus. (BW) Headline of the Day: Apparel maker North Face has sued a parody company called South Butt for trademark infringement. South Butt, which boasts the slogan "Never Stop Relaxing" was created by a college kid who wanted to poke fun at wearers of brand name outdoor apparel like North Face. (ABA Journal)
COPENHAGEN (Reuters) – Danish telecommunications group TDC (TDC.CO) will pay an interim dividend of 30.25 crowns per share for a total payout of 5.99 billion crowns ($1.16 billion), the company said on Thursday. “Following this interim dividend, the board of directors does not expect to recommend any ordinary dividend for the fiscal year 2009 to […]
Fletcher Asset Management has agreed to acquire Budget Travel from Newsweek Inc., a unit of The Washington Post Co. (NYSE: WPO). No financial terms were disclosed.