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| A monthly eNewsletter on leveraged finance | July 2009 |
In this issue
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Tight credit markets have dampened dealmaking, but intrepid buyers and sellers are still getting deals done. As the markets soften, buyers are demanding better prices and terms and, to the extent that they are successful, further eroding sell-side value. Among the terms and structures now used to get deals done are post-closing purchase price payments, earnouts, simultaneous acquisitions, rollups, payments in kind and joint ventures. Each has its issues and complications, but with careful lawyering, both buyers and sellers can protect themselves against unintended consequences. |
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| Assessing M&A Opportunities While They Last | M&A Update | |||||||||||||||
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Why The Clock May Be Ticking For The Right Opportunity After a predictably sharp contraction in mergers and acquisitions (M&A) in the wake of the crisis, there are signs that the tide could soon turn. For instance, equity values have started to stabilize, and debt markets are beginning to show signs of life, with greater liquidity and relatively reasonable rates.  Read more |
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| Done Deals | Recent Transactions | |||||||||||||||
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Co-Lead Arranger • $4 Billion • Asset-Based Credit Facility Based in Hoffman Estates, IL, Sears Holdings Corp. is a leading retailer of home appliances, tools, lawn and garden products, home electronics and automotive repair and maintenance. The loan will be used for working capital needs. GE Capital Markets served as joint lead arranger. Read the press announcement. |
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Co-Lead Arranger
• $230 Million • Cash Flow Term Loan Based in Reston, Virginia, TNS has been a GE Capital client since 2001. TNS provides networking, data communications, telecommunications, financial transactions services and more to retailers, banks, payment processors and others worldwide. The loan supports the acquisition of the Communication Services Group (CSG) from VeriSign, Inc. Read the press announcement. |
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Co-Lead Arranger
• $100 Million • Asset-Based Credit Facility Based in Azusa, CA, Monrovia Nursery is one of the world's largest producers of container grown plants. The loan will be used for working capital needs. GE Capital Markets served as co-lead arranger. Read the press announcement. |
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Lead Arranger •
$75 Million • Debtor-in-Possession Credit Facility Based in Austell, Georgia, Caraustar Industries, Inc., is one of North America's largest integrated manufacturers of 100% recycled paperboard and converted paperboard products. The loan will be used for working capital needs as the company restructures under Chapter 11. Read the press announcement. |
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| Capital Comic | © Randy Glasbergen | |||||||||||||||
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| Indices Watch | Trend Statistics | |||||||||||||||
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M&A Environment May Be One of High Risk, High Reward for Remainder of 2009 According to a recent PricewaterhouseCoopers survey, cross-border M&A transactions can be extremely opportunistic in this recessionary market.  Learn More |
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Global Recession Changed The Rules for Corporations According to a study of executives at 570 leading global companies, the impact of the economic downturn has altered their operating models. Learn More |
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Economic Crisis Will Persist Through 2009 According to a recent report published by Standard & Poor's, financial institutions' outlook remains negative with credit deterioration continuing for the remainder of 2009. Learn More |
| Find financing now at http://www.gelending.com/ | |
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This publication provides general information and should not be used or taken as business, financial, tax, accounting, legal or other advice, or relied upon in substitution for the exercise of your independent judgment. For your specific situation or where otherwise required, expert advice should be sought. The views expressed in these articles reflect those of the authors and contributors and not necessarily the views of GE Corporate Lending or any of its affiliates (together, “GE"). Although GE believes that the information contained in this publication has been obtained from and is based upon sources GE believes to be reliable, GE does not guarantee its accuracy and it may be incomplete or condensed. GE makes no representation or warranties of any kind whatsoever in respect of such information. GE accepts no liability of any kind for loss arising from the use of the material presented in this publication.