According to a WSJ report private-equity firms are adding
debt to the companies they own in order to fund payouts to themselves, a controversial
practice now reaching a record pace……
Leonard Green & Partners LP, Bain Capital LLC and
Carlyle Group LP are among the firms using the tactic, which rose in popularity
before the financial crisis. In these
deals, known as "dividend recapitalizations," private-equity-owned
companies raise cash by issuing debt. The proceeds are distributed in the form
of dividends to buyout groups…..
The resurgence has been helped by investors' appetite for
high-yielding debt at a time of historically low interest rates……………………………………………………………………………………………………………………………………………..
Wait,wait, there’s more at http://online.wsj.com/article/SB10000872396390444592704578064672995070116.html?mod=WSJ_article_forsub
No comments:
Post a Comment