Univision broadcasts a warning to today’s buyouts 11 Jul 2018 The Spanish language TV company is trying sell websites it bought two years ago. The Onion – no joke – was never a fit. Neither was a massive debt load imposed 11 years ago when five private owners bought it. With lenders now looser than ever, private equity risks painful reruns.
Australian hospitals operator given LBO lifeline 27 Apr 2018 An unwanted $3.1 bln offer values Healthscope only a bit higher than its 2014 IPO price. The deal is also being led by the same buyout executive who bought and sold the company for TPG. Healthy skepticism is warranted, but there's a chance to be discharged without further injury.
U.S. buyout barons have new tax-dodge rivals: MLPs 27 Feb 2013 The low tax rates on LBO bosses’ so-called carried interests save them $1.3 bln a year, an advantage critics want wiped out. But new data show investors in energy partnerships are now costing Uncle Sam a similar amount thanks to an outdated perk. Both loopholes should be closed.
Welcome back, CLOs 21 Feb 2013 Sales of new collateralised loan obligations are taking off in Europe for the first time since the financial crisis. These packages of high-yield debt were a major culprit behind the last credit bubble. But this time round, lower leverage has made CLOs safer. They even have a useful role to play in refinancing.
Mega-buyout in UK mobile risks skinny returns 18 Feb 2013 Debt is cheap and plentiful. Big M&A is stirring. And EE’s parents are keen to float Britain’s biggest mobile operator. No wonder buyout shops are circling, for what could be a $15 bln-plus deal. But even with high leverage, the returns wouldn’t be much to ring home about.
Nasdaq both good and too good as LBO target 12 Feb 2013 Talks with Carlyle ended over valuation differences. A sum of the parts shows the U.S. bourse worth at least $7.5 bln, 50 pct more than its public market value. That lends itself to an LBO. But Nasdaq is already efficiently run, making it hard for buyout shops to find much juice.
Dell’s $24 bln LBO involves a club of one 5 Feb 2013 And Silver Lake, the sole private equity firm included, isn’t even really the club. Michael Dell is contributing his 14 pct stake in the PC maker, cash and an investment from his MSD Capital. Time was mega-deals needed a team of buyers. For now, they remain more exclusive.
The $10 bln LBO may again be within reach 1 Aug 2012 Even if private equity firms don’t scoop up $8.5 bln LabCorp, a buyout on that scale looks possible. Big funds collectively have some $500 bln of purchasing power, lenders are hungry for yield and terms are easing. But it would also mean a return to the dreaded club deal.
BC Partners faces wrong kind of gym workout 2 May 2012 Just months ago Fitness First was set to IPO. Now distressed investors are taking control of the gym chain. Excess leverage and lean rivals left it out of shape. The restructuring will burn off most of private-equity owner BC Partners’ roughly 400-million-pound equity investment.
Carlyle makes a mint in $1 bln cash-handling sale 14 Feb 2012 The buyout firm may make a near-40 pct annual return on Talaris, a maker of money-counting kit. Carlyle nurtured a corporate castoff, and bet against the supposedly rapid trend to a “cashless” society. The big win also alleviates the same fund’s embarrassing Greek blow-up.
How does a $31 bln mega-LBO become an $18 mln IPO? 7 Feb 2012 What sounds like a gambling tragedy is the perplexing, yet true, story of the buyout of Caesars Entertainment by TPG and Apollo. The deal, struck at the height of the bubble, has been a tough one. Co-investors are in such a hurry to get out, they’re actually paying to exit.