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| A monthly eNewsletter on leveraged finance | August 2008 |
In this issue
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An economic lull can be an ideal time to purchase a business. However, it’s also a time to be more critical conducting due diligence to determine why a business is for sale and whether the acquisition would be beneficial in the long run. It may be tempting to buy a business or organization if the perceived quality is high and the sticker price is low, but if the business is hard to fold into the purchaser’s existing company, aggressive organic growth may be a better option.
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| Market Insight | Restructuring Market | |||||||||||||||
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Listen to this Restructuring and Bankruptcy webinar in which David Gozdecki of GE Corporate Lending’s Restructuring Group and colleagues from Houlihan Lokey and Skadden Arps provide their perspectives on trends, key drivers and market outlook. Listen to and view Webinar (60 minutes) |
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| Done Deals | Recent Transactions | |||||||||||||||
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Lead Arranger •
$175,000,000 • Debtor-in-Possession Credit Facility Founded in 1953 in Knoxville, Tennessee, Goody’s is an apparels retailer providing clothing and accessories for all ages. The company operates more than 350 stores primarily within the Southeastern U.S. The $175 million debtor-in-possession credit facility will be used for working capital needs as the company restructures under Chapter 11. GE Capital Markets arranged the transaction. |
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Agent •
$112,000,000 • Senior Secured Notes •
Project Finance Founded in 1985 in Conyers, GA, Pratt Industries U.S.A. is one of the country’s largest paper and packaging companies with manufacturing facilities in 20 states. The $112 million in senior secured notes is being used to fund the development, construction, and operation of a greenfield recycled containerboard facility by Pratt Paper LA, LLC, a Louisiana-based subsidiary of Pratt Industries (U.S.A.), Inc. The Pratt Paper LA project is the company’s latest waste-to-energy containerboard mill being built in Shreveport, LA. Once operational, the mill will use 100 percent recycled fiber input to produce approximately 360 thousand tons of containerboard per year. |
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Agent • $100,000,000 • Plan of Reorganization Credit Facility Founded in 1957 in Baldwyn, Miss., Hancock Fabrics is a specialty retailer of fashion and home decorating textiles. From stores in 37 states and online, their merchandise includes fabrics, sewing accessories, sewing machines and needlecraft supplies. The $100 million plan of reorganization credit facility will be used to complete the company’s reorganization as it emerges from Chapter 11. |
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| Capital Comic | © Randy Glasbergen | |||||||||||||||
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| Indices Watch | Trend Statistics | |||||||||||||||
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Lenders Predict Improving Economic Outlook Read the results of this quarterly Phoenix Management survey that shows lenders across the nation expect the economy to improve over the next 6-12 months. Learn More |
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M&A Dealmakers Cautiously Optimistic Find out why more than 500 middle-market merger professionals are frustrated with the current M&A environment, but cautiously optimistic about the next six months in this ACG and Thomson Reuters survey. Learn More |
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Leveraged Loan Index Falls Learn why the loan index being down could indicate that the woes in the credit markets may be deepening. Learn More |
| Find financing now at www.gelending.com | |
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Copyright © 2008 GE Commercial Finance. All rights reserved. “GE,” “General Electric Company,” “General Electric,” the GE Logo, and various other marks and logos used in this publication are registered trademarks, trade names and service marks of General Electric Company. You may reprint or forward this newsletter to others provided that it is reproduced or distributed in its entirety, including this disclaimer. For all other uses please contact Jeffrey Wilson. 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.