When I ask sources "What firm has been battered the worst by the economic mess," I almost always get the same answer: Apollo Management. To better understand why that is, I've created a list of the firm's recent failures, broken down into strategy missteps and ugly deals. On Strategy: 1. Apollo companies are the most active PIK-togglers. Seven of Apollo's portfolio companies have toggled their PIKs and another four have the option to do so. According to a list made by Buyouts' Ari Nathanson, that is by far the most PIKs for any one sponsor. Toggling a PIK substitutes debt payments with more debt, and the move is largely seen as prolonging the inevitable, and a bad sign in a credit crunch. Among them: Berry Plastics, Claire's Stores, Metals USA Holdings, Momentive Performance Materials, Realogy, Rexnord Holdings and Harrah's. See a full chart here. (sub req.) 2. Apollo missed the bottom on distressed debt. In March, the firm began aggressively buying up leveraged loans that they viewed as undervalued, including bonds of their own portfolio companies. At the time, loans were trading at unprecedented low prices averaging
Argosy Partners and MTN Capital Partners have jointly acquired Joliet Equipment Corp., a provider of new and remanufactured traction motors for the oil and gas drilling and exploration market. No pricing terms were disclosed. Fifth Third Bank provided senior financing while Ironwood Mezzanine Capital provided mezzanine notes.
Ascension Insurance Inc., a Kansas City-based insurance and employee benefits agency focused on mid-market companies nationwide, has acquired Charlotte, N.C.-based First Charter Insurance Services Inc. from Fifth Third Bancorp. No financial terms were disclosed. Ascension Insurance is a portfolio company of Parthenon Capital and Century Capital Management.
Point Lookout Capital Partners has acquired Tri-Tech Inc., a Southport, N.C.–based maker of DNA collection kits and customized forensic crime scene investigation products. No financial terms were disclosed, except that FNB Capital Corp. provided leveraged financing. PRESS RELEASE Point Lookout Capital Partners II, L.P., a Manhattan-based private investment firm, announced today that it is […]
National Surgical Care has acquired two multi-specialty outpatient surgical facilities – the Fullerton Surgical Center in Fullerton, Calif., and the Weston Outpatient Surgical Center in Weston, Florida. No financial terms were disclosed. NSC is a Chicag-based portfolio company of CCMP Capital and Brazos Private Equity Partners. PRESS RELEASE National Surgical Care (“NSC”), a leading […]
New Mountain Capital has acquired a majority stake in Camber Corp., a Huntsville, Ala.-based provider of IT, engineering and training services to federal government agencies like the U.S. Department of Defense. No financial terms were disclosed for the deal, which includes equity investment by Camber management.
Marfin Investment Group has acquired a 49.9% shareholding in German executive jet operator Flight Ambulance International Rent – A – Jet Aktiengesellschaft (FAI), from Axtmann Beteiligungus GmbH, for €15m. The deal gives MIG the right to up its stake to 51% for €2.5m during the course of the next two years. Nuremberg-based FAI operates a […]
AEterna Zentaris Inc. (Nasdaq: AEZS) has completed the previously-announced sale of its rights to royalties on future sales of Cetrotide to Cowen Healthcare Royalty Partners. The deal is valued at $52.5 million, plus another $2.5 million in possible earnouts. Cetrotide is a treatment for in virto fertilization.
Providea Inc., a Camarillo, Calif.-based provider of video conferencing solutions and managed services, has acquired Quincy, Mass.-based Videré Conferencing Inc. No financial terms were disclosed. Providea is a portfolio company of Westview Capital Partners, following a recap and growth equity investment earlier this year.
(Reuters) – High River LP, owned by activist investor Carl Icahn, has sued real estate broker Realogy Corp over a debt deal announced last month, the New York Post said on Wednesday. Realogy, which owns real estate brokerages including Century 21, ERA and Coldwell Banker plans a debt exchange to stave off default of some […]