News and Analysis

Masonite International Corp., a door manufacturer owned by KKR, missed a $42 million interest payment of subordinated notes due last Wednesday, partially prompting S&P to lower its corporate rating from CC to D. Moody’s followed by lowering its corporate rating to Caa3 from Caa1, and its probability of default rating to Ca from Caa2.   […]
MOSCOW (Reuters) – The Carlyle Group is suing Russian steelmaker NLMK (NLMK.MM: Quote, Profile, Research, Stock Buzz) to force it to complete a $3.5 billion deal to buy U.S. tubular steel maker John Maneely Co., one of Russia’s biggest merger deals this year. Both sides confirmed in e-mails to Reuters on Saturday that the suit […]
(Reuters) – Sumner Redstone, a controlling shareholder of Viacom Inc and CBS Corp, might be forced to sell either of the companies to help tide over the current financial crunch being faced by his movie theater chain, National Amusements Inc, the New York Post said on Sunday.   National Amusements Inc said last week it […]
(Reuters) – General Growth Properties Inc., the No. 2 U.S. mall owner, is trying to sell up to $2 billion in preferred shares to private-equity firms, hedge funds and other investors in a bid to lower its debt burden, the Wall Street Journal reported. The company’s bankers at Goldman Sachs Group Inc (GS.N) have approached […]
Private equity firm CVC Capital Partners has teamed up with Swiss Re, the world’s largest reinsurance group, to make a bid for a majority stake in Royal Bank of Scotland’s UK insurance assets. CVC held talks with RBS last week over a possible deal, according to a source familiar with the matter. The bid would […]
Veritas Capital has sold Continental Electronics Corp. to Lone Star CRA Fund, for an undisclosed amount. CEC provides digital and analog RF transmitter systems, and was advised on the sale by Houlihan Lokey Howard & Zukin. PRESS RELEASE Veritas Capital announced it has sold Continental Electronics Corporation (CEC) to Lone Star CRA Fund, LP. CEC […]
ARKequity LLC has acquired a minority stake in Integrity Health, a Princeton, N.J.-based health benefits management company. No financial terms were disclosed.
NEW YORK (Reuters) – While the fast-growing alternative energy sector has offered promise as other industries suffer under a weakening economy, that will not be the case in the IPO market for solar and wind companies in the near future, with many expected to sit on the sidelines well into 2009. After a spate of […]
Recession Hits Carl Icahn: He's selling his yacht, and Wall Street Folly has the 13-F charts to show us why. Thanks FT: For finally putting your foot down on these kneejerk overblown Great Depression comparisons. For further proof of the damage, see New York Magazine's Crisis-Speak glossary: Depression: An implicit threat by way of which financial institutions are able to extort ransom to the tune of several hundred billions. Now Firing, I Mean Hiring: Lehman Brothers is taking resumes. Four hundred fifty to be exact. According to Dealscape, the new guys on the block will "look through Lehman's derivatives contracts to determine which parties could assert legitimate claims against the bank." Bankrupt?!: Tweeter Home Entertainment, again, according to gadget blog Engadget. If true, this time the blame falls squarely on its 363 buyer, Schultze Asset Management.
Retailers are entering their most profitable quarter of the year, and many have been forced to tap into revolving lines of credit to cover the costs of inventory and labor. Others are doing it as a preventative measure. The move is particularly worrisome for LBO-backed retailers, given the dismal projections for holiday sales. Add to that the poor performances of many PE retail plays, including the liquidation of Mervyns and Linens N' Things. Beyond that, there's predictions of massive defaults in the first quarter of next year. Not to mention, they're drawing down loans to finance a reduced inventory. Adding further insult to injury, the holiday shopping season is technically one week shorter this year, since Thanksgiving falls a week later than usual. At the top of the list is Blackstone and Bain-backed Michaels Stores, which on Wednesday drew down $120 million from its ABL revolver.

Copyright PEI Media

Not for publication, email or dissemination