Bain Capital

Handicapping the Neuberger Berman sweepstakes

Jim Kim — Wed, 27 Aug 2008 14:09:38 -0400

Well, it certainly feels like an auction. Lehman Brothers has informed three private equity firms--Hellman & Friedman, Bain Capital and Kohlberg Kravis Roberts--that they are still in the running to buy its asset management operations. The Carlyle Group was knocked out; the Financial Times says its $7 billion bid was too low, though it was friendly to Lehman's demands. The Blackstone Group was also knocked out; it was never that committed to such a deal, given concerns over how fund managers would react. Lehman, however, remains undecided if it really wants to sell the unit. KKR and Hellman & Friedman would seem to have the inside track. KKR wants to be a diversified financial service company. Hellman & Friedman thinks the unit would be a good way to grow its asset management ambitions.

For more:
- here's the FT article

Recovery in leveraged loan market?

Jim Kim — Thu, 10 Jul 2008 15:29:50 -0400

IDD reports that the syndicated loan market is still struggling. A big part of that is the on-going drought in leveraged loan issuance, which reflects largely the slowdown in LBO activity. New issuance of loans backing buyouts fell 86 percent in the second quarter to $7.9 billion. That compares with $57.7 billion in the second quarter of last year. But there are some signs that more deals might get done sooner than expected. Smaller deals for targets with good prospects will get some looks, no doubt. IDD reports that Deutsche Bank priced a $515 million term loan coupled with a $50 million revolving facility and $200 million in high yield bonds last week for Oak Hill Capital Partners, which is buying eight television stations. The real pain is at the mega-deal level. Apparently, a deal involving top banks arranging financing for Thomas H. Lee Partners and Bain Capital's acquisition of Clear Channel Communications is struggling as of now.

For more:
- here's the IDD article (For FierceFinance readers)

Big PE firms aim for Chinese mobile company

Jim Kim — Wed, 02 Jul 2008 22:10:20 -0400

The auction for Huawei's mobile device division is boiling. According to the Financial Times, Bain Capital, Kohlberg Kravis Roberts, Silver Lake and a Goldman Sachs private equity unit are safely through to the next round. Meanwhile, TPG, the Carlyle Group and the Blackstone Group either did not bid or failed to make it to the next round. Huawei is being advised by Morgan Stanley. The FT says Huawei wants to sell a significant stake to a private equity firm that can help it expand into the United States. Certainly, such a deal would also represent a key foothold in a country that most regard as laden with deal potential. Bain may have the inside track, given the experience gained when it teamed with Huawei to bid for 3Com, which never panned out. Stay tuned. It's unclear when all this will wrap up.

For more:
- here's the FT article

Big test of leveraged loan market coming up

Jim Kim — Tue, 17 Jun 2008 07:48:57 -0400

The leveraged loan market has been whipped recently. Obviously, it went into the doldrums as the credit crunch reached its nadir. But then the vultures moved in, including a lot of private equity firms, and it looked like the debt was heading back to par. Now, it's a mixed bag. We may get a clearer view of the market when Citigroup, Deutsche Bank and others try to sell about $12 billion in loans in support of the Clear Channel Communications deal. Which, as you may recall, was hotly contested between the banks and private equity buyers Bain Capital and THL Partners. The New York Post reports that the debt may sell at a steeper discount than the average leveraged loan, given the fundamentals in the radio industry.

For more:
- here's the Post article

And the top-ranked private equity firm is ...

Wed, 21 May 2008 06:59:56 -0400

Fortune has come out with a list of top private equity firms according to recent fund raising activity, and the big winner is the Carlyle Group. Yes, its mortgage-backed securities fund stumbled, but so did a lot of others. It's buyout and other funds fared well enough, apparently, to earn the top spot. The Blackstone Group, Kohlberg Kravis Roberts, Bain Capital, Warburg Pincus and TPG round out the top six. Out of nowhere: U.S.-based Advent International, which soared to 7th from not even being ranked the year before. It has specialized in European, middle-market type deals. Another newcomer: First Reserve, which came in 10th after being unranked in 2007. It's forte apparently is energy deals.

For more:
- here's the Fortune list

Clear Channel deal imminent?

Tue, 13 May 2008 06:59:57 -0400

With a trial about to start, hedge fund Highfield Capital and Morgan Stanley decided that all parties to the troubled Clear Channel deal should come to some sort of agreement. A jury trial would not be in anyone's best interests; a lot of dirty laundry and emails just might come out. And so, a deal appears to be imminent, according to the New York Times. Talks are on-going, and the Clear Channel stock started to rally as news crept out. The Times says the price will be reduced for buyers Bain Capital and THL Partners, but the rates on the loans from six top banks likely will be higher. The fact is that the environment for an agreement on a new deal is much better than it was a year ago, when the deal fell part. The outlook for leveraged loans looks better and better.

For more:
- here's the article

Clear Channel trial to get underway

Fri, 02 May 2008 06:59:55 -0400

The court battle pitting six banks--including Citigroup, Deutsche Bank, Morgan Stanley, Wachovia--against private equity firms Bain Capital and THL Partners is expected to get underway next week. You can bet it will be closely watched. The private equity firms are aiming to compel the banks to go through with the deal they struck to finance the purchase of Clear Channel. Of course, the credit mess has put the banks in a bind. The latest twist is that two hedge funds seem to be interjecting themselves into the fray. The New York Post reports that Pentwater Capital Management filed suit for "tortuously interfering" with the deal. Highfields Capital is expected to follow suit.

For more:
- here's the New York Post article

Emails to figure prominently in Clear Channel fight?

Mon, 28 Apr 2008 06:59:55 -0400

Recall that Bain Capital and THL Partners sued a bevy of banks, notably Citigroup and Deutsche Bank, hoping to compel them to finance their $27 billion deal to buy Clear Channel. The New York Post reports that some emails sent among the bankers may be used by the private equity plaintiffs to show that the banks were scheming to get out of the deal. Of course, you can't blame them. Given the state of the leveraged loan market, they likely would be forced to swallow huge losses if the financing took place. One email seemed to call for banks to "start focusing on a plan of action for restructuring the financing." The banks argue that Bain and THL decided the deal wasn't worth it and wanted to find a way to get out of paying the break-up fee.

For more:
- here's the New York Post article

Clear Channel battle turns ugly

Thu, 27 Mar 2008 07:59:58 -0400

The New York Times recounts how Bain Capital and THL Partners officials received a misfired email--one that was meant for anyone but them. It seemed to be all about how the six banks that had agreed to finance the deal were planning to renege. The deal went downhill from there, and now has ended up in court. Clearly, the banks have an incentive to get out of loaning the buyers the money to buy Clear Channel. They would end up taking losses that exceed the break up fee. But you can't blame the buyers for wanting to compel them. We'll see how this ends up. Banks certainly have a lot on the line. Perhaps if they stall long enough, the leveraged loan market will revive a bit, paving the way for a new deal.

For more:
- here's the New York Times article

Related Articles:
Banks still balking at Clear Channel Deal. Article
Wachovia to bust Clear Channel deal. Article
Clear Channel morphs into a test of wills. Article

Banks still balking at Clear Channel deal

Wed, 26 Mar 2008 07:59:58 -0400

The Clear Channel saga continues, and it may end in court. At issue: Bank financing for the nearly $20 billion deal. The two buyout firms--Bain Capital and Thomas H. Lee Partners--seem willing to go to court (and the media) to force banks to honor their commitments, according to the New York Times. You can't really blame the banks, which include Citigroup, Wachovia and Morgan Stanley. They are balking because they are still choking on leveraged loan debt and can't handle much more. If they find an out, they would be liable for a $660 million breakup fee, according to the Times. That's far better than taking a roughly $3 billion loss on the loans, especially at a time, when they face additional leveraged loan write downs in coming quarters.

For more:
- here's the Times article

Related Articles:
Wachovia to bust Clear Channel deal. Article
Hedge funds prevail, Clear Channel bids to go higher. Article
Clear Channel morphs into a test of wills. Article