Topic
Debt Financing
80 published works
Securities Law Prof Blog
Expedia Reduces Size of Stock Buyback
Expedia scaled back its stock repurchase plan, from 116.7 million shares (more than one-third of the outstanding shares) to 25 million shares, citing the cost of borrowing. WSJ, Expedia Is…
Securities Law Prof Blog
Another Bond Offering Cancelled
Underwriters called off a $1.15 billion sale of bonds to pay for the ServiceMaster LBO. Like other recent debt offerings, investors were unhappy with the payment-in-kind provision, which gives companies…
In The (Red)®
Signs Of A Turn In The Private Equity Buyout Market?
Last week saw what may prove to be early signs of a turn in the robust market for the debt that finances private equity buyouts. In just a week's time,…
M & A Law Prof Blog
Private Equity’s Strain?
The Wall Street Journal has a nice article today on the rising number of private equity buy-outs which are getting into trouble. The Journal cites the $1.3 billion purchase of…
M & A Law Prof Blog
TPG (Is Not) Big in Japan
Texas Pacific Group's $560 million offer for a controlling interest in JVC, the Japanese consumer electronics company, is struggling to obtain the necessary debt financing from banks. But don't take…
M & A Law Prof Blog
Sam Zell’s Nice Deal
Sam Zell's $12 billion buy-out of Tribune Co. is making ominously fitful progress. On Friday, Tribune announced that approximately 224 million shares or 92% of outstanding shares were tendered in…
In The (Red)®
A Debt Bubble In Private Equity Deals?
The New York Times DealBook blog has another interesting post on the debt being used to finance private equity deals. This one is entitled "Is Private Equity Riding A Debt Bubble?"…
In The (Red)®
Are Risk Levels Rising For The Debt That’s Financing Private Equity Deals?
The New York Times DealBook blog has an interesting post about the risks posed by all the debt that helps fund the many private equity buyouts these days. It points to two…
Securities Law Prof Blog
Borders Changes Plans on Sale of Debt
A day after announcing it would sell $250 million of convertible bonds, Borders said it changed its mind, "based on shareholder feedback." Some investors want a merger with Barnes &…
ContractsProf Blog
Designing dynamic debt contracts
Classical contract law often assumed contracts whose terms were rigid, inflexible, fixed at the beginning, and critical to the transaction. Some modern views suggest that terms are in practice so…