It seems that there are still a lot of LBO deals on the table that we haven't heard much about. How much LBO financing has been worked out in the last two months, and how much is still on the books for the banks?
Would have been a nice exit for a "legendary" organization. Maybe they can still cook up nice exit strategy before things get really hairy.
Harmon's been through recessions before, they have as good a shot at making it as anyone (bought my first HK amp back in the 70s - economy wasn't pretty back then either). These guys might be better off without the private equity 'help'
Hello we're from KKR and we're here to help you.. Worse than the gov't...
Nice way to spin a $225 million loss into an 'investment'.
...and the market dervish whirls on...
Makes Harman look pretty desperate to take that deal. KKR and Goldman agreed not to hedge the investment for one year. Does anyone actually believe that trash? Maybe they already gathered enough long-dated puts last week. But let's not dream, they are hedged.
I just can't see a cut - not with the inflation pressure... just listened to a 'Purchasing.com' video-newsletter... prices going up everywhere. Jive's with everything I see in my biz travels.
Ya I know RE & automotive is hurting but I can't see how the Fed can justify any more cuts.
BTW - I am NOT hung up on a strong dollar. I might have been if we hadn't been running the monster CA deficits for the last 5-8 years... but that is all water under the bridge now and the result will be a weaker dollar until some of those wayward dollars are 'repatriated' somehow. By our assets or buy our production - one or the other or some of both. Fed can't stop it... shouldn't even try.
No pier loans if you don't count the $400 million convertible issue. Doesn't sound like the kind of paper either Goldman or KKR wants to hold longterm. So, they would prefer to sell it if they can. Still, a much smaller pier than if the $8 billion deal had gone through. I wonder what the terms on this convert will be? I assume Harman doesn't want to pay much interest, but what will the conversion price be? How much equity will Harman be willing to give up to the bondholders?
Actually a convertible is not at all unusual for either KKR or Goldman to hold. The terms on this one are basically public market terms, 1.25% up 20ish%.
Having said that, at the end of the day I think you're right. They are sellers over time.
To bad they didn't make it to an IPO under more favorable circumstances like Blackstone did. Early bird gets the worm, etc.
Would have been a nice exit for a "legendary" organization. Maybe they can still cook up nice exit strategy before things get really hairy.
It seems that there are still a lot of LBO deals on the table that we haven't heard much about. How much LBO financing has been worked out in the last two months, and how much is still on the books for the banks?
but a bell weather indicator of the lbo difficulties nonetheless.
The selling off of America bit by bit begins:
Expired
Would have been a nice exit for a "legendary" organization. Maybe they can still cook up nice exit strategy before things get really hairy.
Harmon's been through recessions before, they have as good a shot at making it as anyone (bought my first HK amp back in the 70s - economy wasn't pretty back then either). These guys might be better off without the private equity 'help'
Hello we're from KKR and we're here to help you.. Worse than the gov't...
The selling off of America bit by bit begins...
The cost of running trillion dollar current account deficits for years and years and years. WTF did people expect was going to happen, nothing?
S&P would like you to know that they expect 2006 subprime to have 3x more losses than 2000. because they're vigilent.
http://www2.standardandpoors.com/portal/site/sp/en/us/page.article_print/2,1,1,0,1148448474734.html
Nice way to spin a $225 million loss into an 'investment'.
...and the market dervish whirls on...
Makes Harman look pretty desperate to take that deal. KKR and Goldman agreed not to hedge the investment for one year. Does anyone actually believe that trash? Maybe they already gathered enough long-dated puts last week. But let's not dream, they are hedged.
Does using convertible notes to buy back stock make as little sense as it sounds like on the first read?
So dryfly,
My gut tells me that the Fed is going to cut 50bps, and my head says 25bps.
Are you still in the no-cut camp?
The selling off of America bit by bit begins...
A GOP admin facilitates the selling of the US to commie China.
Who'd thought.
albrt,
Well, you're buying back stock at $18+ and selling it at $22 and for that right you are paying 1.25% annually.
Does it make sense? Very, very marginally, but both sides wanted out of this in a face saving way. This is about the best that could be expected.
Are you still in the no-cut camp?
I just can't see a cut - not with the inflation pressure... just listened to a 'Purchasing.com' video-newsletter... prices going up everywhere. Jive's with everything I see in my biz travels.
Ya I know RE & automotive is hurting but I can't see how the Fed can justify any more cuts.
BTW - I am NOT hung up on a strong dollar. I might have been if we hadn't been running the monster CA deficits for the last 5-8 years... but that is all water under the bridge now and the result will be a weaker dollar until some of those wayward dollars are 'repatriated' somehow. By our assets or buy our production - one or the other or some of both. Fed can't stop it... shouldn't even try.
Hey don't worry about anything. The God of the Federal Reserve is in his heaven and all will be well.
Expired
Just a minute...inflation???
I see...no inflation because the Federal Reserve will make sure there isn't any.
Gee I was worried there for a moment.
Words of wisdom from the dryest of flies: "These guys might be better off without the private equity 'help'
"
Absolutely
No pier loans if you don't count the $400 million convertible issue. Doesn't sound like the kind of paper either Goldman or KKR wants to hold longterm. So, they would prefer to sell it if they can. Still, a much smaller pier than if the $8 billion deal had gone through. I wonder what the terms on this convert will be? I assume Harman doesn't want to pay much interest, but what will the conversion price be? How much equity will Harman be willing to give up to the bondholders?
Sunlight,
Actually a convertible is not at all unusual for either KKR or Goldman to hold. The terms on this one are basically public market terms, 1.25% up 20ish%.
Having said that, at the end of the day I think you're right. They are sellers over time.