LONDON, June 5 (Reuters) – Bondholders of Dutch semiconductor company NXP BV said dwindling cash may force the firm to restructure its debt, despite a planned $300 million bond buyback to cut leverage and interest costs. NXP, one of Europe’s largest privately owned firms, on Thursday offered to buy back unsecured dollar and euro bonds […]
NEW YORK (Reuters) – American International Group Inc (AIG.N) has picked a group that includes private equity firms Onex Corp (OCX.TO) and Greenbriar Equity Group as the preferred bidder for its aircraft leasing unit, a source familiar with the situation said on Friday. However, the insurer has not signed an exclusivity agreement with the group […]
Book Smart vs. Street Smart: "White-collar fugitives often fail to escape the law because of what prosecutors and bounty hunters say is a lack of preparation for the rigors of life on the lam." Brilliant. (Bloomberg) Showdown!!! Venture Capitalists are about to turn in private equity players: "The venture capital industry is gearing up to fight against raising the tax on carried interest. A key battle is differentiating itself from the private equity industry." (Bits) Rate Shopping: The nerve. Moody's is complaining that TALF is causing issuers to "shop" for credit-ratings, or seek the highest ratings with the lowest standards, according to Moody's Corp. (Bloomberg) Forced Default: Clear Channel's lenders want a forced default. Ouch. (FT) Closer Look: "The Worrying Wall of Debt" (The Deal) Movie Stars: They've casted a man to play Bernie Madoff in an upcoming movie. (Cityfile)
In April, small-market lender Patriot Capital Funding announced it was considering strategic alternatives. What the struggling BDC (business development corp.) didn't say was that the company had already shopped itself widely and was kicking off a full auction. Last week, Patriot took first-round bids from eight parties, according to two lending sources who asked not to be named. One source said the bidding pool included two or three fellow BDCs and one private equity firm, adding that bids ranged from $2 per share to "full valuations" of $3 per share. As of 2pm this afternoon, Patriot Capital was trading at $1.91 per share, or a $40 million market cap. A year ago, the BDC's shares traded at more than $9 per share, but in recent months, Patriot Capital has met difficulty. In April one of the company's credit facilities was terminated because the value of assets provided as collateral had dropped.
As usual, we have a week’s worth of ratings actions on the debt of private equity-backed companies from Standard & Poor’s and Moody’s Investor Services. This week was a good one for debtholders, as a number of companies saw their debt ratings upgraded. But on second thought, it wasn’t that great, since most of these upgrades are post-distressed-debt exchange. After an ‘SD’ (selective default) rating, there’s nowhere to go but up, and in a distressed debt exchange, someone has to take the short end of the stick, and it’s usually not the equity holder. Certainly not an ideal situation, but as I said last week, we’re only at the tip of the distressed debt exchange iceberg (despite oddly successful issuances from the likes of previously unpopular companies like Harrah’s). Get ready for a very cold few years… Company: Brigham Exploration Co.
Sponsor: DLJ Merchant Banking Partners
Update: S&P affirmed its 'CCC+' corporate credit rating on the oil and gas exploration and production company. It’s been removed from the Weakest Links list because the outlook is developing.
Highlights: “The affirmation follows the company's announcement that it has received net proceeds of roughly $94 million from an equity issuance. Although the pro forma liquidity profile is much improved, we are concerned that liquidity could become tight in the fourth quarter of 2009 or first half of 2010 due to low natural gas prices and an increased capital budget.”
NEW YORK (Reuters) – The U.S. Federal Deposit Insurance Corp said on Friday that it would wind down Silverton Bank, a failed Atlanta bank that regulators seized last month, and sell its assets instead of trying to sell it as a whole. Regulators took over the bank on May 1 and created a “bridge bank” […]
Victory Industrial Products, a Batavia, Ohio-based portfolio company of WHI Capital Partners, has acquired KDS International, a Terrell, Texas-based maker of gas turbine products. No financial terms were disclosed.
Topspin Partners LBO and Integris LLC have acquired the Alpharetta, Ga.-based veterinary business of Sanuwave Inc., which includes pulsed energy therapeutic products for the non-invasive management of musculoskeletal disorders causing chronic pain and lameness in veterinary patients, primarily horses and dogs. No financial terms were disclosed.
SEOUL (Reuters) – The parent group of South Korea’s largest bank Kookmin is seeking to raise up to $3 billion through a share sale by around the third quarter, a banking source said on Friday, as it prepares for a surge in bad loans and possible acquisitions. KB Financial Group’s (105560.KS) planned sale would come […]
Bummer: How does the busted Rio-Chinalco deal hurt Blackstone Group? As advisors to the deal, they drop nine spots on global M&A ranking without it. (Deal Journal) Made Up His Mind: Roberto Cavalli finally decided to sell a stake to a buyout firm. (WSJ) This is a Problem: Dennis Berman does the math on the U.S. taxpayers' investment in GM and concludes that, short of a magic trick, we won't be getting that money back. Pretty much ever. (WSJ) Reviews: Here's an in-depth review of Pete Peterson's new memoir. (Reuters) MBA Report: "In year of unprecedented market downturn, seniors flee finance and consulting for education and health." (Harvard Crimson)