Tag Archives: Bain Capital

PIK Toggle High Yield Bond Issuance Soars As Market Heats Up

By Tim Cross, Contributor

There’s more evidence of a rebounding U.S. high yield bond market: PIK toggle deal volume has soared in July as issuers take advantage of an institutional investor market that once again has become accommodating in its search for yield. PIK toggle deals – which give the issuer the option of repaying the debt “in kind” (as opposed to cash) – have totaled roughly $2.85 billion so far in July, making it the busiest month for these deals since October 2012, and the second-busiest since the pre-Lehman days of September 2008. In fact, some of the July transactions have been the largest PIK toggle offerings since the leveraged finance boom of 2008, according to LCD’s Jon Hemingway. , for instance, last week priced an $800 million offering, part of which will fund a dividend to private equity sponsors Bain Capital and Blackstone Group. demand for the deal was such that it was increased from $700 million. The issue was rated CCC+/Caa1. Also last week, healthcare networks concern MultiPlan completed a $750 million PIK toggle deal, part of which backs a dividend to sponsors BC Partners and Silver Lake. The Multiplan issue also is rated CCC+/Caa1. And just today U.S. retailer Party City unveiled a $300 million PIK toggle offering backing a dividend to private equity sponsor Thomas H. Lee. The appeal of these deals to investors is obvious. The Michaels deal priced with a coupon of 7.5% (cash) or 8.25% (PIK), while MultiPlan priced with a coupon of 8.375% (cash) or 9.125% (PIK). Those figures are in contrast to the 6.79% average yield of U.S. senior unsecured high yield deals, as of July 25, according to S&P Capital IQ/LCD (that average yield is calculated on a rolling 30-day basis). Again, it’s worth noting that many of the PIK toggle deals being completed have relatively low ratings, which contributes to the relatively hefty yield. PIK toggle bonds came about during the rising-rate leveraged finance environment of 2004 and 2005. Their use peaked during the heady capital markets days of 2007 and 2008, before the financial market collapsed (you can read more about how PIK toggle bonds work here). So far in 2013 PIK Toggle issuance totals roughly $6 billion, compared to only $1.4 billion during the same period in 2012. PIK toggle issuance picked up during the second half of last year, to finish 2012 with $6.7 billion in volume. That’s the most since the $13.4 billion recorded during 2008. …read more

Source: FULL ARTICLE at Forbes Latest

Coeur Announces Nomination of Randolph E. Gress to Board of Directors

By Business Wirevia The Motley Fool

Filed under:

Coeur Announces Nomination of Randolph E. Gress to Board of Directors

COEUR D’ALENE, Idaho–(BUSINESS WIRE)– Coeur d’Alene Mines Corporation (the “Company” or “Coeur”) (NYS: CDE) (TSX: CDM) today announced that Randolph E. Gress has been nominated for election to the Board of Directors at the Company’s 2013 annual meeting of shareholders to be held May 14, 2013. Upon his election, Mr. Gress is expected to be appointed to the Audit Committee and the Nominating and Corporate Governance Committee.

Mr. Gress, an experienced industrial CEO with a wide range of international exposure, brings over 34 years of experience to Coeur’s Board. Mr. Gress is Chairman, Chief Executive Officer, and Director of Innophos Holdings, Inc., a leading international producer of performance-critical and nutritional specialty ingredients for the food, beverage, dietary supplements, pharmaceutical and industrial end markets. Mr. Gress has been with Innophos since its formation in 2004 when Bain Capital purchased Rhodia SA’s North American specialty phosphate business. Prior to his time at Innophos, Mr. Gress was with Rhodia since 1997 and held various positions including Global President of Specialty Phosphates (with two years based in the U.K.) and Vice-President and General Manager of the NA Sulfuric Acid and Regeneration businesses. From 1982 to 1997, Mr. Gress served in various roles at FMC Corporation including Corporate Strategy and various manufacturing, marketing, and supply chain positions. Mr. Gress has a B.S.E. in Chemical Engineering from Princeton University and an M.B.A. from Harvard Business School.

“We are pleased to have Randy join Coeur’s Board of Directors,” said Robert E. Mellor, Coeur’s Chairman of the Board. “Mr. Gress brings significant corporate leadership experience, having guided his company through the challenges of private equity ownership and an IPO. He has led Innophos Holdings, Inc. as a public company since its IPO in 2006.”

About Coeur

Coeur d’Alene Mines Corporation is the largest U.S.-based primary silver producer and a growing gold producer. The Company has four precious metals mines in the Americas generating strong production, sales and cash flow in continued robust metals markets. Coeur produces from its wholly owned operations: the Palmarejo silver-gold mine in Mexico, the San Bartolomé silver mine in Bolivia, the Rochester silver-gold mine in Nevada and the Kensington gold mine in Alaska. The Company also owns a non-operating interest in a mine in Australia, and conducts ongoing exploration activities in Mexico, Argentina, Nevada, Alaska and Bolivia.

Toys "R" Us Withdraws IPO Filing

By Eric Volkman, The Motley Fool

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Toys “R” Us has decided not to pursue a stock market listing, at least for the moment. The company withdrew its stock registration statement in an official filing with the Securities and Exchange Commission, giving no reason for doing so.

The toy retailer, currently owned and operated by KKR , Vornado Realty Trust , and the privately held Bain Capital, initially registered for an IPO in May 2010.

Additionally, the company released its Q4 and 2012 results. For the quarter, net sales totaled $5.8 billion and bottom line was $239 million. For the full year, net sales were $13.5 billion, down from fiscal 2011’s $13.9 billion. Net profit came in at $38 million, against the prior year’s $149 million.

The article Toys “R” Us Withdraws IPO Filing originally appeared on Fool.com.

Fool contributor Eric Volkman has no position in any stocks mentioned, and neither does The Motley Fool. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.

Copyright © 1995 – 2013 The Motley Fool, LLC. All rights reserved. The Motley Fool has a disclosure policy.

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Source: FULL ARTICLE at DailyFinance

Judge: US can't make Monaghan offer contraceptives

A judge on Thursday blocked the federal government from requiring the founder of Domino’s Pizza to provide mandatory contraception coverage to his employees under the health care law.

U.S. District Judge Lawrence Zatkoff granted a preliminary injunction against enforcement of the contraception provision of the law against Tom Monaghan and Domino’s Farms Corp., a management company located near Ann Arbor, Mich.

The company, which is not connected to Domino’s Pizza, has 45 full-time and 44 part-time employees, according to its court filing. Monaghan sold his controlling stake in Domino’s Pizza in 1998 to private equity company Bain Capital and sold his remaining Domino’s stock in 2004, according to Domino’s Pizza spokesman Chris Brandon.

“It is in the best interest of the public that Monaghan not be compelled to act in conflict with his religious beliefs,” Zatkoff wrote.

Monaghan is a Roman Catholic and said in his suit that he considers contraception a “gravely immoral” practice. He offers employees health insurance that excludes coverage for contraception and abortion.

The new federal law requires employers to offer insurance that includes contraception coverage or risk fines. According to Zatkoff’s order, Domino’s Farms faced $200,000 in yearly payments under the law. Employers have until Aug. 1 to comply with the law.

U.S. Department of Health and Human Services spokeswoman Erin Shields said Thursday night that she couldn’t comment on the matter because the litigation is still pending.

In its response to the suit filed in December, the department denied the health care law had a substantial effect on Monaghan’s exercise of his rights to religious freedom or freedom of speech.

The provisions of the health care law “are narrowly tailored to serve two compelling government interests: improving the health of women and children, and equalizing the provision of preventive care for women and men so that women who choose to can be a part of the workforce on an equal playing field with men,” the government said.

Erin Mersino, a lawyer for the Thomas More Law Center, a conservative Christian legal defense group that represented Monaghan, noted that the law requires employers to offer health coverage that includes access to the morning-after pill and similar emergency contraception pills.

The morning-after pill works by preventing …read more
Source: FULL ARTICLE at Fox US News

Why Blackstone Group Is Poised to Outperform

By Brian Pacampara, Pacampara, The Motley Fool

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Based on the aggregated intelligence of 180,000-plus investors participating in Motley Fool CAPS, the Fool’s free investing community, alternative asset manager Blackstone Group has earned a coveted five-star ranking.

With that in mind, let’s take a closer look at Blackstone and see what CAPS investors are saying about the stock right now.

Blackstone facts

Headquarters (founded)

New York (1985)

Market Cap

$11.1 billion

Industry

Asset management

Trailing-12-Month Revenue

$4.0 billion

Management

Co-Founder/Chairman/CEO Stephen Schwarzman
President/COO Hamilton James

Return on Equity (average, past 3 years)

(1.1%)

Cash / Debt

$1.1 billion / $13.2 billion

Dividend Yield

8.6%

Competitors

Bain Capital
The Carlyle Group 
KKR & Co.

Sources: S&P Capital IQ and Motley Fool CAPS.

On CAPS, 98% of the 91 members who have rated Blackstone believe the stock will outperform the S&P 500 going forward.

Just last month, one of those Fools, jayhjenkins, succinctly summed up the Blackstone bull case for our community: “Global powerhouse in M&A advisory, P/E, LBO, Credit, and hedge funds. This company is poised to make an impact on a resurgent capital market all over the world.”

If you want market-topping returns, you need to put together the best portfolio you can. Of course, despite its perfect five-star rating, Blackstone may not be your top choice.

If that’s the case, we’ve compiled a special free report for investors called “Secure Your Future With 9 Rock-Solid Dividend Stocks,” which uncovers several other juicy income opportunities. The report is 100% free, but it won’t be around forever, so click here to access it now.

Want to see how well (or not so well) the stocks in this series are performing? Follow the TrackPoisedTo CAPS account.

The article Why Blackstone Group Is Poised to Outperform originally appeared on Fool.com.

Fool contributor Brian Pacampara has no position in any stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.

Copyright © 1995 – 2013 The Motley Fool, LLC. All rights reserved. The Motley Fool has a disclosure policy.

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function addEvent(obj, evType, …read more
Source: FULL ARTICLE at DailyFinance

Pass on This Stock Until Debt Comes Down

By Michael B. Lewis, The Motley Fool

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For those who bought Bloomin’ Brands last fall, it’s been a great run. The stock came out of the IPO gates at $11 only to rally up more than 60% in six months. Here at the Fool, we weren’t too excited about the restaurant holdings company based on its questionable reasons to go public and very high interest rates on near-term debt. The market didn’t seem to care, and the company is still flirting with its all-time highs. After the most recent earnings report, we see a company that is outperforming its competitors on sales figures, but still debt-laden. In the meantime, it is one of the more expensive restaurant stocks on the market. Let’s take a look at the numbers to see if Bloomin’ Brands should be on your menu or if it’s a heart attack waiting to happen.

Indebted
As is all too frequent with companies owned by leveraged buyout firm Bain Capital, Bloomin’ Brands was born into the public markets riddled with debt. The company had $248 million in 10% notes due in 2015 along with $1.1 billion in variable rate debt. In 2014, the company has $938 million in debt repayments alone. While it is no doubt a growing enterprise, Bloomin’ Brands has low margins that will seriously hurt free cash flow over the next few years.

All that said, the company had a solid fourth-quarter and full-year earnings report.

Earnings rich
Starting out with full year-results, the company earned $0.99 per share in diluted earnings versus $0.81 in 2011. Adjusted net income rose to $114 million, compared to $86.5 million the year before. Same-store sales, one of the most important metrics when looking at restaurants, were up 3.7%, driven by traffic growth of 2.7%. This compares to an industry average of 0.6% in same-store sales and traffic down 1.5%. Revenue grew 3.8% to more than $4 billion. That’s less than a 3% net income margin, but we’ll back to that later.

In management’s conference call, the tone was cautious. Citing the usual suspects of sequestration, tepid consumer confidence, and high gas prices, the company isn’t sure 2013 will be a banner year even though it seems to be an industry leader. Its focus will remain on value-oriented items. In my opinion, that is a wise strategy for the company if it intends to make a long-term recovery from its ridiculous debt load.

At Outback specifically, same-store sales were up 5.3% in the fourth quarter and 4.4% on a full-year basis. Though I’m not a frequenter of the steakhouse myself, I cannot deny that the restaurants seem to be full every time I see one. Fleming’s, an upscale steakhouse, performed exceptionally well, with 5.1% full-year same-store sales growth. I believe that Fleming’s is an encouraging brand for the company, as upscale restaurants should have some insulation from general economic trends.

The company opened 15 restaurants internationally, contributing to overall new store growth of 37 — two above estimates. Outback …read more
Source: FULL ARTICLE at DailyFinance

Video: NRA Stand And Fight: We Are America

By Daniel Noe

Barack Obama, Bill Clinton, and all other elite politicians trying to marginalize the law-abiding, average American must never forget that they work for us!

…read more
Source: FULL ARTICLE at Western Journalism