Wednesday, June 27, 2007

Delay in Buyout Bond Sale

Two new signs emerged to suggest that investors are concerned that the buyout boom may be losing its momentum. US Foodservice, the American unit of the Dutch supermarket Royal Ahold, has postponed its sale of $650 million in bonds that were expected to finance the unit's equity buyout. Before the decision, US Foodservice had twice scaled back its debt offering to help finance its $7.1 billion buyout by Kohlberg Kravis Roberts and Clayton Dubilier & Rice.The decision to delay the sale, one anxiously watched by analysts as a weathervane for the newest crop of buyouts loaded with debt, came on the same day that shares of Blackstone Group, the giant private equity firm that went public last week, fell below their offer price of $31.
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