The mid-2007 credit crunch brought about a bit of renaissance for several groups—distressed investors, mezzanine lenders and, more recently, secondary buyers of LP stakes. You might say secondaries are having a “moment.” For that reason, I half expected today’s Private Equity Secondaries Conference to be a bit like Drexel Burnham’s infamous “Predator’s Ball,” at the peak of the junk bond heyday. An exciting event for a specific group of professionals on the verge of a big, exciting seachange. Clearly, I got ahead of myself. The conference, while useful, doesn’t exactly have that frenzied, “new masters of our domains” feel. Secondaries are certainly gaining momentum, but they’re not there yet. The thing that’s been holding them back is the bid-ask spread, and judging by the comments I’ve heard today, it hasn’t really improved in the past month.
TORONTO (Reuters) – Canadian Industry Minister Tony Clement said on Friday that bankruptcy protection is not the government’s preferred option for Chrysler [CBS.UL], although it is a possibility. “Well, the preferred option is that there is no bankruptcy protection because the company (has become) viable and has reached a deal in this case with (Italian […]
(Reuters) – SumTotal Systems Inc (SUMT.O) on Friday agreed to be bought out by Accel-KKR, whose offer of $3.80 a share in cash, or about $124 million, trumped an offer made by the company’s largest shareholder earlier this month. The offer made by affiliates of Accel-KKR is at a premium of about 89 percent over […]
NEW YORK (Reuters) – Starwood Hotels & Resorts (HOT.N) said on Friday a U.S. district judge entered a preliminary injunction against Hilton Hotels and two of its executives preventing them from developing its luxury brand further, the latest development in Starwood’s lawsuit against Hilton. In a release, Starwood said Judge Stephen C. Robinson of the […]
As usual, we have a week's worth of ratings actions from ratings agencies Standard & Poor's and Moody's. We excluded the ratings changes on the week's two bankruptcies, which were Odyssey Investment Partners' Dayton Superior Corp. and Bruckman Rosser Sherrill's Eurofresh. Company: Banc of America Capital Investors
Sponsor: Cumulus Media Inc.
Downgrade: Moody's downgraded the company's corporate family rating to Caa1 from B3 and its probability of default rating to Caa1 from B3.
Highlights: "The downgrade of the PDR to Caa2 incorporates Moody's view that there is increasing probability that Cumulus will likely default under its tightening financial covenants over the near term, absent an amendment. Moody's considers that Cumulus' lenders will agree to loosen the level of the company's already- elevated financial maintenance tests only in exchange for significantly higher pricing, which in turn will serve to tighten the company's liquidity profile."
Quantum Energy Partners is sponsoring the development of hydrocarbon-based energy resources on the Fort Peck Indian Reservation in Montana. No financial terms were disclosed for the commitment, which is being made via a platform called Native American Resource Partners. Quantum’s partners on the effort are the Reservation’s Assiniboine and Sioux Tribes.
Enesco LLC, a giftware platform sponsored by Tinicum Capital Partners, has agreed to acquire the Charming Trails brand of resin figurines from Fitz and Floyd Inc. It also has acquired the Department 56 brand from Lenox Group Inc. (recently acquired by Clarion Capital Partners), according to LBO Wire. No financial terms for either transaction were disclosed.
Westwood One (OTC BB: WWON) has completed a previously-announced restructuring plan that included private equity firm Gores Group increasing its stake in the radio broadcaster to 72.5 percent. Gores originally invested $100 million via a PIPE last year, and has now provided another $25 million in equity (raising its stake to 74.8%). Westwood One also refinanced […]
(Reuters) – U.S. chemical maker Ashland Inc (ASH.N) is looking for buyers for its Valvoline motor-oil division, which could fetch as much as $1 billion, the New York Post said citing sources familiar with the matter. The first round of bidding took place within the past several days. Prestone and several private-equity firms each made […]
Olympus Partners has invested $50 million in equity and subordinated debt in the parent company of Phoenix Services LLC, a Unionville, Penn.-based provider of mill services to the steel industry.