LBO

Bill Blain: How To Catch Rabies In The Junk Bond Market

There are a number of things that worry me. First is the market doesn’t seem to think Toy R Us is symptomatic of wider problems across the whole hi-yield and LBO sector. Scond, high yield spreads continue to tighten against bonds...

Herbalife Surges After Announcing $600MM Stock Buyback, Failed LBO Transaction

Herbalife announced that while the company had tried and failed to pursue an LBO, it has instead entered into a pact with Carl Icahn and unveiled a "self-tender" offer according to which it would pursue a whopping $600 million buyback, equivalent to about 10% of its market cap, purchasing shares at a price between $60 and $68

A Tale Of Two Countries (Or How The Fed Enabled Corporate Kingpins To Scalp Billions)

"...capital markets are deeply and perhaps irreparably broken by the Fed’s massive falsification of financial asset prices... all this financial engineering has starved the real main street economic for capital investment - even as the cash flows shunted back to Wall Street have showered the fast money operators and gamblers with massive windfalls."

US Equities: Unwinding The Yellen Leveraged Buyout

"Corporate credit spreads are the key indicator to watch, both in terms of the economy and the financial markets.  It’s a game of financial musical chairs. Ray Dalio, Janet Yellen and all of us are dancing.  When does the music stop?"

Gymboree Misses Interest Payment, Prepares For Bankruptcy Filing

Distressed children's clothing retailer Gymboree took the first step to a Chapter 11 bankruptcy filing after it elected not to make the interest payment due June 1 on its outstanding 9.125% notes due in 2018, Debtwire reported, with Moody's downgrading the company to D from CC on Friday, as it does not expect Gymboree to make the interest payment.

Median LBO Multiple Rises To 10.8x, Highest Since The Financial Crisis

According to a new report by PitchBook, after reaching new highs in 2016, acquisition multiples inched even higher in the first quarter of this year, and as a result the median EV/EBITDA multiple hit 10.8x in 1Q 2017, up from 10.7x last year. That was the highest median multiple paid since the financial crisis.

Energy, Money, And The Destruction Of Equilibrium

"No matter what the economic leaders say, these actions prove to me and many others that their mental models of the world have failed. They’re able to hide behind authority and academic vocabulary which if put in plain terms for the lay person could be described as theft, ponzi, tyrannical and moronic."

The Full Breakdown Of How Trump Tax Policies Will Impact S&P Earnings

Some form of corporate tax reform under Trump seems likely likely as it is a stated priority of President Trump and has widespread Congressional support. In the following analysis, BofA analyzes the four components that could have big equity implications on S&P500 earnings over the coming years.

Art Cashin On The History Of Friday 13th In The Markets

In his daily note, everyone's favorite veteran floor trader, UBS' Art Cashin, reprises the history of Friday the 13th in the markets, and finds that it is far less scarier than some may believe, and in fact has a mild upward bias as it is up 55% to 60% of the time. There are, however, accidents, and on Friday, October 13, 1989, the attempted LBO of UAL collapsed and the Dow plunged 190 points, equal to 860 points today.

In His Latest Letter, Odey Refuses To Throw In The Towel

With his fund down ~50%  YTD, one wonders if Crispin Odey should be thinking about quietly exiting stage left after a long and mostly illustrious career. However, as his latest letter suggests, Odey is just getting his second, or maybe third, wind and is confident that he will ultimately win the war against central bankers.