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> Then Remington borrowed $225M which it transferred to S which then bought back its stock X from Cerberus. hmm. so, who is willing to loan Remington $225M in
by sigstoat 7y ago
> Then Remington borrowed $225M which it transferred to S which then bought back its stock X from Cerberus.
hmm. so, who is willing to loan Remington $225M in that situation? it seems like "recently bought by private equity company known for shenigans" would discourage banks and prospective bond purchasers?
- CalChris 7y agothe holding company offered a generous interest rate of around 11 percent. When the interest payments were due, the holding company paid them not in cash but with paid-in-kind notes, that is, with more debt. Who could refuse such a deal?
- sigstoat 7y ago> In 2010, Cerberus had the holding company borrow $225 million from an undisclosed group of lenders, most likely hedge funds. [...] ah, thank you for pointing that out. but then: > In April 2012, Cerberus did something fateful, which probably seemed smart at the time. It had Remington borrow hundreds of millions of dollars and use it to buy the holding company’s debt hm so the first set of lenders were paid off. did the second set get similar terms?