HCA Holdings continues to give back to its private equity owners. HCA shareholders, mainly KKR [...]Continue
Moody’s expects PE firms to continue to use dividend recaps to get cash this year.Continue
Here are this week’s top 10 posts based on number of pageviews from peHUB’s regular readers. Hot topics included powerful women in private equity, details of Zynga’s upcoming IPO and the biggest biotech deals of Q4 so far.
1. Slideshow: Five Powerful Women In Private Equity – by Bernard Vaughan
2. Zynga’s IPO By The Numbers And A Look At Its Three Classes Of Stock: Slideshow – by Mark Boslet
3. Slideshow: Where the Biotech & Device Investors Are–Q4 Edition – by Jonathan Marino
4. Founders Fund on Monday Meetings, Patience, and That New $625 Million Fund – by Connie Loizos
5. Wanted: Private Equity High-Flyers in Growth Areas – by Reuters
6. Slideshow: A Selection of Euro Buyout Fund Terms and Conditions – by Angela Sormani
7. Eight Steps To Mastering Small Company Acquisitions – by Ben Smith
8. The Uniforms of Silicon Valley, a Slideshow (subscribers only) – by Connie Loizos
9. Quien Es Mas Macho? A Slideshow of the Top 5 U.S. PE Funds this Year (subscribers only) – by Luisa Beltran
10. Moody’s: Most Bubble-era LBOs Struggle, while Dollar General, HCA Shine – by Luisa Beltran
Many bubble-era LBOs have turned in poor performances, according to a report from Moody’s Investors Service.
Moody’s looked at 40 LBOs from 2006 to early 2008, the go-go days for buyouts. While a majority of the companies have seen their financial leverage drop, earnings and revenue growth for most have been “significantly below” projections, Moody’s said.
Exits for the bubble group have also been rare. In fact, most are still owned by their PE owners, the report said. Seven have completed IPOs and only one target has been sold (that’s Alltel. Verizon Wireless acquired Alltel in 2009; it had been owned by TPG and Goldman Sachs PE unit). Only five of the companies have paid “material dividends,” while three companies–Chrysler, Aleris International and Station Casinos– have filed for bankruptcy, Moody’s said.Continue
Not every IPO can be LinkedIn. Or HCA, apparently.
Today, shares of Vanguard Health Systems fell below their $18 IPO price. Nashville-based Vanguard sold 25 million shares at $18 each earlier this week via bookrunners BofA Merrill Lynch, Barclays Capital, Citi, Deutsche Bank Securities and JP Morgan. The underwriters have the option to buy an additional 3.75 million shares.
Vanguard’s stock yesterday stayed barely above water, closing at $18.05 a share. Today, Vanguard’s shares fell 24 cents, or 1.33%, to $17. 81 in afternoon trading. Volume was 1.26 million. With its stock below its $18 IPO price, Vanguard officially became a broken deal.Continue
Fresh off the success of the HCA IPO, the Blackstone Group is reportedly looking to take Vanguard Health Systems public.
Nashville-based Vanguard, a hospital operator, may file with the SEC later this month, according to Bloomberg. Vanguard may file for the IPO without underwriters, the story said.Continue
Want to catch up on what your colleagues found most interesting on peHUB this week? Here are the posts written by our staff that garnered the most pageviews from March 14 to March 18.
1. Source: Seed-Stage Rounds Up 50 Percent in New York; Valuations Up 30 Percent LINK – by Connie Loizos
2. Scathing Report Details CalPERS Bribery Scandal LINK – by Gregory Roth
3. Who Cares About HCA? Silver Lake, KKR Make Five Fold Gain on Avago Investment LINK – by Luisa Beltran
4. KKR Kinda Sorta Talks Succession At First Ever Investor Day LINK – by Luisa Beltran
5. West Coast, East Coast Investment Rivalries Heat Up LINK – by Mark Boslet
6. Cleantech Far From Down And Out: 83 Funds Said To Be Raising $23.5B LINK – by Mark Boslet
7. Social Scene: Feld Shares TMI for Fitbit, Bathroom Humor at SXSW, 4 Birthdays Coming LINK – by Lawrence Aragon
8. Cleantech’s Nemesis: Consumer Awareness Still Lags LINK – by Mark Boslet
9. BrightSource Raises Another $122M As Speculation Of IPO Increases LINK – by Mark Boslet
10. Winning! or Losing? A Look Into the Super-Fund Movement LINK – by Connie LoizosContinue
Want to catch up on what your colleagues found most interesting on peHUB this week? Here are the posts written by our staff that garnered the most pageviews from March 7 to March 11.
1. Disqus to Facebook: “We Aren’t Shaking In Our Boots” – by Connie Loizos.
2. Is Savvis Finally Up for Sale? Tech Co. Said to Have Hired Qatalyst – by Luisa Beltran.
3. Schwarzman, At $5.9B, Among Richest LBO Pros (Well Ahead Of Kravis) – by Steve Bills.
4. Summit Partners Raising $3B Growth Equity, $450M Venture Funds – by Mark Boslet.
5. Doerr, Moritz Make Forbes’ Billionaire List; Will They Make the Resurrected Midas List, Too? – by Alastair Goldfisher.
6. Israeli Venture Funds Raised Zero Dollars in 2010; The Situation is “Critical” – by Connie Loizos.
7. HCA Doesn’t Look So Bad. Here’s The Top 10 PE-backed IPOs – by Luisa Beltran.
8. It Took Two Years But Wynnchurch’s Third Fund Comes In at $603M – by Luisa Beltran.
9. This Anti-Registration Campaign Might Have Legs – by Bernard Vaughan.
10. Sequoia, Google Ventures Join $32M Round For HubSpot – by Mark Boslet.Continue
BERLIN, March 3 (Reuters) – Private equity firms see a strong year for IPOs as institutional investors back growing companies and buyout firms hold on to large stakes in the hope of getting even greater returns. After a rocky start in 2010 as public markets rejected a number of private equity-backed initial public offerings (IPOs), […]Continue
Recent IPO filings by the likes of Freescale Semiconductor Inc. and HCA Inc. may lead some to conclude that mega-buyouts circa 2005-2007, once at grave risk from the recession, are finally in the clear.
That may turn out to be the story. But an article published last week by three credit analysts at ratings agency Standard & Poor’s—Allyn Arden, William Wetreich and Kenneth G. Drucker—suggests many of the largest deals from the golden age of private equity remain at risk of defaulting on their debt obligations (see table, next page). Were the economy to stall, or worse, they could well go belly-up.Continue
1) It’s Not a Bubble, People; It’s a Pyramid Scheme, by Connie Loizos
2) Scoop: Peter Wagner Parts Ways With Accel After Nearly 15 Years, by Alastair Goldfisher
3) Halsey Minor Sticks It To Virginia, Again, by Connie Loizos
4) ‘Goldfinger’ Hits $732M On 2nd Mount Kellett Fund, by Gregory Roth
5) Oak Hill To Make Back 40% of Dave & Buster’s Investment in Nine Months–UPDATED, by Luisa Beltran
6) Riding High On Q4 Profit, KKR Expects To Fully Deploy ’06 Fund, by Luisa Beltran
7) J-Dubs Redux: Beaten Abandoned, & Left For Dead, J.W. Childs Is Back, by Bernard VaughanContinue
(Reuters) – Hospital operator HCA Inc, which has filed for an initial public offering for up to $4.6 billion, posted a slight increase in second-quarter net income on Thursday as it reported greater activity at its facilities. Net income attributable to HCA rose to $293 million from $282 million. Revenue rose nearly 4 percent to […]Continue
NEW YORK, May 10 (Reuters) – HCA Inc’s planned initial public offering is likely to be positive for the hospital operator’s credit spreads and ratings, as the company plans to use proceeds to pay down debt, though the road to investment grade will take more time. HCA, which is backed by buyout firms Bain Capital […]Continue
NEW YORK (Reuters) – Hospital operator HCA Inc, backed by buyout firms Bain Capital and Kohlberg Kravis Roberts & Co (KKR.AS), on Friday filed for an initial public offering of up to $4.6 billion, the biggest buyout-backed offering since the financial crisis began nearly three years ago. The filing comes as IPOs around the world […]Continue
If the HCA dividend-to-IPO showed us anything, it’s that investors don’t mind PE backers taking money off the table before a (probable) public offering. The consensus at Buyouts West last week was that the HCA dividend recap was not an isolated case, with others to follow in the coming months.
But that just seems greedy, you say. Why do PE pros need a payday before an IPO, which essentially counts as a payday? Why don’t investors rail against this practice?
The answer is simple: If it doesn’t substantially increase the company’s debt, investors don’t care. Furthermore, most PE backers take very few shares off the table in an IPO; the returns come from follow-on offerings or private sales. They may remain in a company for three more years before fully exiting their position. Therefore, investors in an IPO don’t view a sudden dividend recap as a risk. PE backers would be working against their own interest if they took a large, risky dividend recap on a soon-to-be public company.Continue
NEW YORK (Reuters) – Hospital chain HCA Inc is expected to file for an initial public offering worth between $4 billion and $4.5 billion as soon as mid-May, CNBC reported on Thursday. The company is currently talking to underwriters. The IPO pricing and debut are expected in mid-July, pending regulatory approval from the U.S. Securities […]Continue
NEW YORK (Reuters) – Hospital chain HCA Inc is considering an initial public offering in the coming months, a source familiar with the situation said on Wednesday. Bloomberg earlier reported, citing sources, that HCA is preparing for an IPO that may raise $3 billion, and plans to interview banks to underwrite the sale in the coming […]Continue
HCA Inc. is planning to sell between $1 billion and $1.5 billion of 10-year senior secured first lien notes. It had originally said that it would offer just $500 million. The yield is expected to be nine percent. HCA was taken private in 2006 by Bain Capital, KKR and Merrill Lynch Global Private Equity. www.hca.comContinue