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Restructuring

An Influx of European FIG PIPEs?

July 7, 2008 - When TPG announced it would inject £179 million into UK financial institution Bradford & Bingley, it didn't only signal the first capital infusion by a private equity firm into a UK bank. It also heralded the possibility of additional private investment in public equity (PIPE) issues by European financial services firms.

Balance Sheet Minefield

July 7, 2008 - Sales have swooned and home prices have plummeted while inventories of homes--new and existing--have ballooned. At the same time, credit conditions have tightened and the economy has seen a dramatic slowdown, leading restructuring professionals like Ron Greenspan of FTI Consulting to believe there is more trouble down the road for homebuilders.

US Auto Wreck?

July 7, 2008 - GM and Ford share prices are trading at 52-week lows and investors have found that bonds from auto makers are tough to sell. At the same time, credit default swaps for both companies are at levels suggesting that they will file for bankruptcy within the next five years.

'Evolve Or Perish' For PE?

June 30, 2008 - Emerging markets, sovereign wealth funds and debt availability are helping shape change in the private equity market, according to law firm Walkers.

Standing Out

June 30, 2008 - In IDD's latest roundtable, a group of seasoned buyout market dealmakers convened in the magazine's New York offices to explore various aspects of the M&A market and the topic of buyer differentiation. Transaction structures, seller expectations, deal sourcing, private equity firm marketing and the value of operations talent were issues that took center stage in the discussion attended by Benesch, Friedlander, Coplan & Aronoff executive chairman James Hill, Red Diamond Capital managing director Bret Russell, Lazard Middle Market co-chief executive David Solomon, Altus Capital Partners senior partner Elizabeth Burgess and Wynnchurch Capital managing director Charles 'Chip' Grace.

CDS' Role In Bankruptcy

June 30, 2008 - As if the market needed something else that would push companies toward bankruptcy, the large market for credit default swaps may do just that, according to analysts. Why? Because, these analysts note, CDS holders may not have the same incentive as other investors to keep companies out of bankruptcy or help with restructuring.

Ambac Asks Fitch To Terminate Rating Contract

June 23, 2008 - Ambac Financial said last Wednesday it asked Fitch Ratings to terminate its ratings contract, as part of what the bond insurer characterized as a 're-evaluation' of its business.

PE Pros Leading Debt Syndications

June 23, 2008 - Private equity firms are taking a much more active role in securing debt financing for leveraged acquisitions, illustrating the stiff challenge facing financial sponsors in the leveraged finance market amidst a slower deal market, a group of buyout executives said at IDD's 'Post Crunch M&A: Doing Deals in a Down Market' conference in midtown Manhattan last Wednesday.

Appetite For PE Funds Still Strong

June 23, 2008 - It's no secret that private equity firms have been putting their money to work in a variety of investment avenues in 2008 other than leveraged buyout transactions. Investments in distressed debt, specialty finance companies and troubled businesses, coupled with growth capital infusions in banks have been commanding headlines, apparently to the consternation of institutional investors in private equity funds.

Loan to Own Opportunities

June 23, 2008 - Traditional acquirers may see it as a back-door method of gaining control, but as the debt markets continue to wallow, buyers may increasingly turn to loan-to-own strategies as a way to wrest control of troubled companies.

'Like, What's ARS?'

June 23, 2008 - Preppy teens and the auction-rate securities market would seem to have about as much in common as, well, me and preppy teens, but sometimes looks can be deceiving.

Deconstructing The Commercial Mortgage Market

June 23, 2008 - The credit crisis that's roiled Wall Street for nearly a year has dramatically changed how commercial properties are financed, altering the roles of different participants in a financial food chain that underwrites mortgages for properties such as malls and office buildings and then resells them into securities. Borrowers have had to turn to so-called portfolio lenders such as insurance companies and banks. In some cases, hedge funds and other funds have stepped in to provide short-term loans.

ARS Challenges

June 23, 2008 - The $330 billion auction-rate securities (ARS) market is currently in disarray. If ARS' are part of your portfolio, you need to be considering ways to deal with them.

S&P Says Big Impact From Ambac, MBIA Cuts

June 16, 2008 - Downgrades of MBIA and Ambac on June 5 have 'broad ramifications' for various corners of the global finance markets, according to a report issued last week by Standard & Poor's, which said 1,600 classes of structured finance transactions worth $350 billion will be affected by the downgrades.

CIT Enters Financing Agreement With Goldman

June 16, 2008 - CIT Group announced last week it agreed to a $3 billion long-term committed financing facility from Goldman Sachs.