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Bad Day For Blackstone As IPO Window Closes
Whereas Blackstone top ticked its IPO sublimely with the very peak of the stock market, they seem to be losing their magic touch. Today's horrible weather apparently impaired the mood of those who enjoy using other people's money to buy the "equity" in companies still leveraged 7x and higher, i.e. Blackstone specials. Graham Packaging is the last attempt by Blackstone to salvage something out of this bear market rally.
Blackstone Group LP’s Graham
Packaging Co. cut its initial public offering by more than half
as a slumping market for IPOs helped prevent the world’s largest
private-equity firm from trimming its stake in the maker of
plastic containers.
Graham Packaging, 75 percent owned by Blackstone, lowered
the price of today’s stock sale to $10 to $11 each from as much
as $16, after pushing back the offer from yesterday, according
to a Securities and Exchange Commission filing and Bloomberg
data. Existing owners will no longer sell shares and the IPO may
raise as little as $167 million, 55 percent less than the
maximum Blackstone and Graham originally sought.
Unfortunately for Schwarzman the fourth time was not the charm.
Graham Packaging’s IPO today is at least the fourth time
Blackstone has tried to sell the York, Pennsylvania-based
company since completing its acquisition of the plastic-
container maker in 1998, data compiled by Bloomberg show.
For Blackstone apparently getting any equity value out of a company is enough.
Graham Packaging will be the second U.S. company majority-
owned by Blackstone offered in an IPO after Stephen Schwarzman,
62, the firm’s chief executive officer, said in October that
there were as many as eight companies that it planned to take
public. For Knoxville, Tennessee-based Team Health Holdings
Inc.’s deal in December, Blackstone accepted a 25 percent
discount and also dropped its portion of the sale.
Yet the piece de resistance comes from Dow Jones, which reports that Blackstone has just postponed the IPO of formerly going-public shoe in, and mega-LBO, Travelport, which has pulled the "market conditions" card. The IPO window is now over. Will the HY issuance window follow suit?
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No one wants to buy crap anymore. No made in china led toys, and no IPOs for fragulent money runners. Leverage is done. What is leverage good for if you are using it to buy something that is worthless. Food, shelter, and wine and cannabis...thats it.
+100
I am so sick of crap from China, sure we told them we want cheap, but I did not, I am willing to pay for quality. I get gastric movements entering Walmart.
Every time I have gone to Wallmart I feel like I have jumped into another, and perverse, reality. The bright lights, the docile faces of not only the workers but the consumers, it all makes my skin crawl. Every time it is like a horrible acid trip. If there is a God, please help this country understand what has happened, what is happening, and what is immenent...because they can not learn it on their own...well, not until it is too late.
I like your avatar and the "double down" logo man, makes sense you need to go to walmart regularly. They sell lots of cheap underwear there. check yours, non seriously, it is definitely made in china lol. I tried that trick on denninger 3 years ago, and eversince he has been at his vitriolic best on the CCP every week because of those underwear. America is so screwed it doesn't even make decent underwear any more. And btw, apple ipod, macs and stuff are all made in china. Maybe an advice dude, go to the greek mountains and live a hermit's life, they have lots of those 200 years ago. At least you wouldn't be buying any china-made stuff and no need to pay taxes to fund the bankstas.
Teh fed will buy them.
Off topic, but check this out:
http://blogs.wsj.com/law/2010/02/10/from-us-attorneys-office-to-second-c...
I remember when Blackstone first went public. The financial media pimped it for they were worth. One tool said the stock would double in the 1st day of trading.
Of course, the stock had a small bump then proceeded to tank, never again seeing its $30 offer price.
My favorite move was Schwarzmans sale of BX the week they IPOed.
Deflating asset values = catching falling knives.
Try again in a few years.
What happened to Marlas post from earlier?
Is the Zero Hedge Information Technologists, Nuclear Isotope Transportation, Lockpicking & Costume Shop Amalgamated, Local 5134-1 go-slow strike over yet?
Dow 5000 or 15000?
5000 then 15,000 intraday....friday.
It's not important which path the fuck takes. It's simply realizing that you're fucked.
In reality you will be fucked both ways. In alternating fashion. Like AC electricity.
Blackstone - iconic; at least they didn't miss their own IPO and their chairman threw a grand party from the proceeds the chinese paid them. anyway the food they served at the party probably all came from china, so its zero-sum game for china. That by the way was was the top of the market, absolute top since the start of the S&P, probably won't ever see those levels again. that is why Blackstone investment managers are all given the "Master of Universe" sticker when they are promoted above entry level analysts. Three years ago, partners from Goldman and McKinsey rated Blackstone their favourite next destination.
anon 19:31
dude, you don't think the S&P will ever regain the levels achieved in the summer of 2007?
good point, "ever" is a long time. how about by, say, 2030? like last time. "in the long run we are all dead" - j.m. keynes.
Anyone associated with this POS should be indicted for fraud. Highly likely it will be bankrupt by 2011 with 1.8B of debt maturing that year. See S-1 http://www.sec.gov/Archives/edgar/data/1478085/000119312509258390/ds1.ht...
Bad Day at Black Rock was a classic Spencer Tracy movie from 1955. The mysterious stranger comes to town and makes short work of cleaning up the town's local corruption.
My deceased father's favorite movie ... thanks for the memories!
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