Chris Flowers and his banker buds have bailed on their $25 billion buyout of Sallie Mae. Now the fight is on for $900 million in breakup fees, and the likeliest venue is a Delaware courtroom. J.C. Flowers and Sallie Mae had agreed on the $60 per share deal back in April, with additional equity commitments […]
The original buyout of Atkins Nutritionals was one of the worst private equity deals ever transacted. Even worse than Refco. And now it’s back in private equity hands, after having spent several post-bankruptcy years controlled by first-and-second lien holders. Certainly a curious move by new owner North Castle Partners. And brave. And possibly stupid. For […]
Buyouts Magazine is reporting that Providence Equity Partners plans to use a portion of its $12 billion fund to acquire loans and debt securities issued by media companies. In similar news, peHUB has learned that Leonard Green & Partners is doing the same thing, albeit not via the special purpose vehicle strategy that Providence is apparently using. Leonard Green managing partner […]
When the Home Depot Supply buyout was reworked earlier this month, numerous press reports discussed how the resolution would serve as a model for other hung transactions. Then I read the same thing earlier this week, when KKR made some minor concessions on the leverage terms for its pending buyout of First Data. So does […]
Each month, I put together a “Six Degrees of Separation” feature for Buyouts Magazine. It typically connects a private equiteer with some celebrity who has a similar-sounding name. It’s the kind of seminal work that keeps Economist HR folks on speed dial. Anyway, yesterday I mentioned to Buyouts editor David Toll that there was a […]
In promoting their firms, buyout pros often point to a troop of hard-bitten executives that can parachute into portfolio companies to perform miracles. These may be full-time operating partners, part-time special advisors, or consultants waiting in the wings. Six sigma this, outsource that, acquire a major rival—these executives deliver advice that can give a powerful […]
In the weeks following Rupert Murdoch’s bid for Dow Jones, I got asked a few dozen times if a private equity firm would step in to play white knight. “No,” I replied, because of the dizzying price point. Moreover, private equity firms are best when buying a strong product that has been underperforming due to […]
Ari Nathanson is leaving Buyouts Magazine at week’s end, which causes all sorts of “going-away party” problems, as he doesn’t drink. But at least he’s going out with a strong portfolio, like a new story (sub req.) about how private equity firms own half of all U.S. companies that have defaulted on their debt in […]
Thomson Financial has compiled a wide array of market data for August, but there is a unifying theme: The month was slow. Very, very slow. Here is the Capital Markets Snapshot: Here is the M&A Snapshot, which includes breakout data for financial sponsor-backed transactions. Here are some of the lowlights, for those to lazy to download: […]
Oaktree Capital Management has decided to help loosen some of the “hung bridges” that are currently strangling Wall Street. Sources tell me that the Los Angeles-based firm is raising between $3 billion and $5 billion for a new fund that will buy up LBO-related debt that banks have been unable to place. It is being […]