BloggingStocks http://www.bloggingstocks.com BloggingStocks http://www.blogsmithmedia.com/http://www.bloggingstocks.com/media/feedlogo.gif BloggingStocks http://www.bloggingstocks.com en-us Copyright 2012 Weblogs, Inc. The contents of this feed are available for non-commercial use only. Blogsmith http://www.blogsmith.com/<![CDATA[Bond market mending its wounded ways]]>http://www.bloggingstocks.com/2007/09/28/bond-market-mending-its-wounded-ways/http://www.bloggingstocks.com/2007/09/28/bond-market-mending-its-wounded-ways/http://www.bloggingstocks.com/2007/09/28/bond-market-mending-its-wounded-ways/#commentsFiled under: , ,

First Data, the first of the large PE deals seeking financing following the meltdown of the credit markets, placed $9.4 billion in loans yesterday. Supposedly, the amount of debt sold was nearly double the $5 billion banks targeted.

Also, Oaktree Capital Management, BlackRock and Eaton Vance are forming funds to buy up some of this debt. The 400 bps banks have had to add on to yields are beginning to pique investor's interest.

What should also begin to be seen is that the amount of debt that needs to be placed should start coming down. News reports cite as much as $330 to $370 billion in loans need to be placed. However, this number seemed to grow as the credit-market meltdown fears hit the markets. Prior to the panic hitting a crescendo, $200 billion in leveraged loans and some $75 to $100 billion of high yield bonds were the target that needed to be sold.

However, take away First Data and TXU Corporation (NYSE: TXU), the two large deals being financed, and add to that Harman International Industries Incorporated (NYSE: HAR) and Sallie Mae that look like they might not get financed, and this number drops rather quickly. Plus add all the smaller deals that are not household names that will not get done and next thing you know this problem is being resolved.

Once again, free markets are correcting the problem that they created.

Bond market mending its wounded ways originally appeared on BloggingStocks on Fri, 28 Sep 2007 10:15:00 EST. Please see our terms for use of feeds.

Permalink | Email this | Comments]]>BlackRockEaton VanceEatonVanceFDCFirst DataFirstDataHARHarmanOaktree CapitalOaktreeCapitalprivate equityPrivateEquitySallie MaeSallieMaeTXU CorpTxuCorpFri, 28 Sep 2007 10:15:00 EST<![CDATA[Formica's lustrous buyout deal]]>http://www.bloggingstocks.com/2007/05/23/formica-s-lustrous-buyout-deal/http://www.bloggingstocks.com/2007/05/23/formica-s-lustrous-buyout-deal/http://www.bloggingstocks.com/2007/05/23/formica-s-lustrous-buyout-deal/#commentsFiled under:

Just four years ago, Formica was mired in bankruptcy. Interestingly enough, this was one of the attractions for private equity firms Cerberus Capital Management LP and Oaktree Capital Management LLC, which were able to get a strong brand for a bargain price of $175 million.

Now, they are selling out to Fletcher Building, an Australian building materials manufacturer, for $700 million. To get the deal done, Fletcher will tap the frothy debt markets as well as do an equity offering.

While private equity firms get criticized a lot, the Formica deal is certainly a case study for showing how they can be extremely helpful in rejuvenating companies. There was quite a bit of restructuring and a focus on low-cost manufacturing areas, such as China.

The deal comes to about 7 times EBITDA, which is a pretty good valuation for Cerberus and Oaktree.

Fletcher trades in the Australian equity markets and the deal was announced after the close of trading.

Tom Taulli is the author of various books, including the Complete M&A Handbook and the EDGAR-Online Guide to Decoding Financial Statements.

Formica's lustrous buyout deal originally appeared on BloggingStocks on Wed, 23 May 2007 12:51:00 EST. Please see our terms for use of feeds.

Permalink | Email this | Comments]]>Cerberus CapitalCerberusCapitalFletcher BuildingFletcherBuildingFormicaOaktree CapitalOaktreeCapitalWed, 23 May 2007 12:51:00 EST