BC Partners this morning invested $350 million into retailer Office Depot Inc. (NYSE: ODP), which represents approximately a 20% ownership stake. The investment includes $275 million in newly-created 10% Series A convertible perpetual preferred stock, convertible at $5 per share (32% premium to yesterday's $3.79 per share closing price), and $75 million of newly-created 10% Series B convertible perpetual preferred stock, convertible at the same terms (assuming shareholder approval).
Voyager Learning Co. (OTC BB: VLCY), an educational publisher for the K-12 market, has agreed to merge with Cambium Learning Inc., a provider of education services to at-risk and special student populations. The deal will result in Cambium sponsor Veronis Suhler Stevenson holding a majority stake in the combined public company, with Voyager stockholders to receive approximately $194 million.
HONG KONG (Reuters) – Shares of Chinese electronics retailer GOME Electrical Appliances Holdings (0493.HK) doubled on Tuesday when trading resumed after U.S. private equity firm Bain Capital agreed to invest up to $418 million. GOME, dubbed China’s Best Buy, on Monday agreed a high-profile deal for Bain Capital to invest via convertible bonds and new […]
(Reuters) – Hedge funds that provided bankrupt U.S. auto parts maker Delphi (DPHIQ.PK) with debtor-in-possession (DIP) financing are not getting access to the firm’s books, hindering their ability to make a takeover offer, the New York Post reported, citing a person familiar with the situation. The lenders are led by hedge fund Elliott Associates, the […]
See you back here in a week! Claw it Back: The NY Post is pretty sure Apollo will be paying a few clawbacks in the coming quarters. (NY Post) Give Bankruptcy A Chance: Bear Stearns should have been allowed to go bankrupt. (Weekly Standard via Clusterstock) Green Shoot Myself In The Head: CNBC Europe is "sick" of the phrase green shoots. (Clusterstock) Who isn't? Even Maria Bartiromo is backpedaling on her gushing use of the phrase. Bank of AMerrilca: Bank of America Merrill Lynch has launched its new branding campaign, with the horrible tagline, "Signed, Sealed and Delivering." Merrill's famous bull logo is out (with apologies I'm sure to the Merrill Lifers who had it etched into their hot tubs and pruned into their gardens). (Dealscape)
LONDON (Reuters) – Debt-laden Ceva Group launched a discounted bond exchange on Friday as it took steps to cut its large debt burden. In the offer, the Dutch logistics firm will exchange outstanding bonds for between 47 percent and 62 percent of their face value, depending on the maturity of the bonds and the timing […]
Swander Pace Capital has acquired Insight Pharmaceuticals Corp., a Langhorne, Penn.-based provider of niche OTC brands like Sucrets, Dermarest, Gentle Naturals, Bonine, Anacin and Nix. No financial terms were disclosed. www.spcap.com
The first two quarters of this year witnessed 46 bankruptcy filings from companies backed by private equity firms. That places 2009 on pace to double last year's total of 49, which is right in line with some predictions from the end of last year. Download the full spreadsheet after the jump. A few notes on the list this quarter: 1. The second quarter list includes our first mega-buyout bankruptcies: Extended Stay Inc., backed by Lightstone Group, and Chrysler, backed of course by Cerberus Capital Management. These deals could be the tip of the mega-bust iceberg, but I think most would agree that they're isolated incidents. We're still waiting, with bated breath, for 2011, when the real flood of mega-buyout debt begins to mature. Until then, the mega-market bankruptcies (ones with deal values greater than $5 billion) will be limited to the most underperforming companies with the most ridiculous capital structures.
HONG KONG (Reuters) – GOME Electrical Appliances (0493.HK), a top China electronics retailer, on Monday U.S. private equity firm Bain Capital has agreed to take up to a quarter of its shares under a plan to raise $418 million or more. GOME, whose founder Huang Guangyu is being investigated for alleged financial irregularities, said Bain […]
NeuroTherm, a Wilmington, Mass.-based medical device maker focused on interventional pain, has acquired Micron Catheter, whose product is used in an interventional pain procedure used to remove scar tissue. NeuroTherm is a portfolio company of The Cortec Group.