Sometimes a deal can really work out

TheDeal.com offers an interesting look at a deal that's working out; it may end up a rare example of success. Recall that Verizon Wireless agreed to buy Alltel from TPG Capital and Goldman Sachs Capital Partners on June 5. The original sponsor-led buyout was inked back in May 2007, when the private equity world was booming. But then came the credit crunch, and about $23 billion in leveraged loans hung at the likes of Citigroup and, ahem, Goldman Sachs. This past spring, the debt subsequently was sold at a big discount to a group of private equity distressed securities funds, including a fund from TPG. Since then, the value of the bonds likely has risen. When Verizon decided it still wanted to buy Alltel at a small premium, it seemed like a charmed deal for all. There's more to the deal, but you get an idea of how things can work out for some sponsors. This will not likely be repeated. The key is to have a portfolio company that is really performing. There will be fewer of these.  

For more:
- here's the item from TheDeal.com

Related Article:
Private equity firms win with Alltel deal