Lone Star Funds closes buy of DFC Global and takes it private

Lone Star Funds has completed its acquisition of DFC Global Corp. According to terms of the transaction, DFC Global stockholders are receiving $9.50 in cash for each share of DFC stock they own. Also, the company’s stock will no longer trade on the NASDAQ and be delisted. DFC Global Corp. is a provider of alternative financial services.

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Lone Star Funds agrees to buy DFC Global Corp for about $1.3 bln

DFC Global Corp said Wednesday that it has agreed to be acquired by Lone Star Funds for approximately $1.3 billion. According to terms of the agreement, DFC Global shareholders will receive $9.50 in cash for each share of DFC common stock they own. The deal is expected to be completed in the third quarter of 2014. Houlihan Lokey Capital advised DFC Global on the transaction while Jefferies was the lead financial advisor to Lone Star Funds. Jefferies Finance and Credit Suisse are providing debt financing for the acquisition. DFC Global Corp. is a provider of alternative financial services.

Wereldhave Completes Derisk Phase

Wereldhave and Lone Star Funds have completed the sale and purchase of Wereldhave’s portfolio in the US for $720 million gross. The proceeds from the property disposals were used to reduce group debt.

U.S. PE Deal Value Jumped 78% in January

A surge of deal announcements in early January helped push up monthly transaction totals. The value U.S. private equity transactions rocketed by 78% to $8.2 billion in January, Thomson Reuters data says.

Caliber Funding and Vericrest Combine Operations

Caliber Funding and Vericrest Financial have joined forces to create a full-service, residential mortgage banking organization offering loan originations and loan servicing solutions. The combined organization will continue to be owned by Lone Star Funds.

Lone Star Warns South Korea of Legal Action

The Dallas-based private equity firm Lone Star Funds warned the South Korean government yesterday that it is initiating arbitration proceedings over the sovereign state’s involvement in Lone Star’s sale of Korea Exchange Bank to Hana Financial Group earlier this year for roughly $3.5 billion. PRESS RELEASE: Lone Star Funds (“Lone Star”) confirmed today that it […]

Report: Lone Star Scraps KEB Stake Sale

(Reuters) – U.S. private equity firm Lone Star [LS.UL] has decided to scrap its plan to sell a majority stake in Korea Exchange Bank (004940.KS) worth $4 billion at the current market price due to weak demand from potential investors, a local paper said. “Lone Star told financial investors in the United States, Hong Kong […]

Lone Star Puts Bi-Lo On The Block

(Reuters) BI-Lo LLC, a U.S. supermarket chain owned by Lone Star Funds, is up for sale and has drawn interest from strategic and financial buyers, making it the latest private equity portfolio company to go on the block, a source familiar with the matter said on Monday. U.S. supermarket chains Kroger Co and Publix Super […]

ANZ Hires Banks for KEB Bid

HONG KONG/SYDNEY (Reuters) – Australia and New Zealand Banking Group Ltd (ANZ.AX) has hired Goldman Sachs JBWere and JP Morgan (JPM.N) to advise on its bid for a majority stake in Korea Exchange Bank (004940.KS), sources said on Wednesday, in what is expected to be a more than $4 billion deal. Sources told Reuters last […]

Lone Star’s Bi-Lo Expects To Exit Bankruptcy Next Month

LOS ANGELES (Reuters) – Supermarket chain BI-Lo LLC said on Thursday it expects to exit bankruptcy in May, backed by its private equity owner Lone Star Funds, after it received court confirmation for a reorganization plan. BI-Lo, which has 207 supermarkets and over 15,000 staff, filed for bankruptcy 13 months ago, just days before two […]

Is Distressed Fundraising Still Red Hot?

In 2008 and 2009, distressed debt was the most in-demand private equity strategy for institutional investors. And it doesn’t seem to have cooled off this year, despite a recovering economy and general sluggishness within the private equity fundraising market.

Oaktree Capital Management, Centerbridge Partners, Lone Star and MHR Fund Management are just a few large distressed debt firms currently raising new funds.

There are a number of reasons these players are likely to find success. For starters, they are riding the coattails of last year’s blockbuster year for distressed debt (i.e., strong strack records). Admittedly, debt is trading around par this year — and much of the upside for distressed debt plays is behind us — but timing concerns rarely dampen LP enthusiasm.

“Aside from the limits of the market opportunity, most investors are still looking to deploy capital in that space,” said Jérémie Le Febvre, a partner with fund placement agent Triago. One reason, he explained, is that many investors remain overallocated

Lone Star Completes Lodgian Acquisition

Lone Star Funds has completed its take-private acquisition of hotel owner and operator Lodgian Inc. (NYSE: LGN) for approximately $270 million (including assumed debt). Lodgian stockholders received $2.50 per share.

Lodgian Shareholders Okay Sale to Lone Star Funds

Lone Star Funds has received shareholder approval to acquire hotel owner and operator Lodgian Inc. (NYSE: LGN) for approximately $270 million (including assumed debt). Under terms of the agreement, Lodgian stockholders would receive $2.50 per share.

Lone Star Sends Teaser Letter for KBE Sale

SEOUL (Reuters) – U.S. fund Lone Star has sent teaser letters for sale of its $4 billion controlling stake in Korea Exchange Bank (004940.KS) to potential investors at home and abroad, Maeil Business Newspaper reported on Tuesday. Lone Star sent letters to some 50 overseas investors, including banks and private equity funds, and 5-6 local […]

Lone Star To Resume $3.9 Billion KEB Stake Sale

SEOUL (Reuters) – U.S. private equity fund Lone Star plans to resume selling a $3.9 billion majority stake in Korea Exchange Bank (004940.KS), KEB said, in what would rank as South Korea’s biggest banking deal to date. Previous attempts by Lone Star to sell its 51 percent holding in the country’s 6th-ranked lender — to […]

Lone Star Plans To Sell KEB Stake Within 6 Months

BERLIN (Reuters) – Private equity firm Lone Star Funds [LS.UL] expects to sell its majority stake in Korea Exchange Bank (004940.KS) in the next six months, Lone Star managing partner John Grayken said on Wednesday. Lone Star previously tried to sell the stake but was thwarted. British bank HSBC (HSBA.L) in 2008 dropped a $6.3 […]

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