Re: Seagate Technology 1. Describe the main terms of the Seagate Technology buyout? Why is Seagate undertaking this transaction? Is it necessary to divest the Veritas shares in a separate transaction? What are other alternative ways to create value? The primary contemplated terms would be to sell Seagate’s disk drive mfg assets including $765M in cash to Suez Acquisition Company controlled by Silver Lake Partners. The purchase would be financed by equity put up by Silver Lake and also by an‚
Premium Leveraged buyout Leverage Stock market
including leveraged buyout‚ venture capital‚ and growth capital. Private Equity firm is a very viable option for us finance students as a career‚ and they also offer a competitive reward compared to other financial institution. Private Equity Strategy Below are some of the strategies commonly used by Private Equity firm as a base for their operation. The strategies we describe are used for more mature companies that already have an operating cash flow. 1. Leveraged Buyout Leveraged buyout
Premium Private equity Investment Leveraged buyout
size‚ and ability to finance the acquisition. A management-led leveraged buyout of Exotic would both be feasible and practical. Because of our high credit rating (A+)‚ we can borrow at 4.5%. We are able to meet the obligations of the payments because our global unit sales have increased over time‚ and because we have consistently been profitable. Ability to pay for the debt is not reason enough to go through with a buyout. There are significant other reasons as well; our EPS has never been
Premium Marketing Economics Strategic management
Ragan Thermal Systems plc was founded nine years ago by brother and sister Carrington and Genevieve Ragan. The company manufactures and installs commercial heating‚ ventilation and cooling (HVAC) units. Ragan has experienced rapid growth because of a proprietary technology that increases the energy efficiency of its systems. The company is owned equally by Carrington and Genevieve. The original agreement between the siblings gave each 50‚000 shares. In the event that either wishes to sell the shares
Premium Stock Stock market Snack food
catch up with growth of the company. 2. Assess how each alternative addresses the family needs and key concerns of each alternative (buyout‚ leveraged recapitalization‚ private-IPO). A. Buyout : It can’t be good solution‚ because a private company doesn’t have liquidity. It means buyout fund have difficulties to make the money from a private company B. Leveraged recapitalization : As I mentioned‚ this is foremost solution if they want to solve their problems on their hands. However this is too risky
Premium Net present value Stock market Privately held company
financial results and would incur further losses in the future. One of Citigroup’s main concerns was the risk of their exposure from holding leveraged loans. Due to the increasing risks and costs associated with holding these loans‚ Citigroup approached several large investors‚ including a private equity firm and a hedge fund‚ about purchasing leveraged loans from their portfolio. Blackstone expressed interest in a portfolio that contained a total face value of $6.11 billion‚ with16 different issuers
Premium Debt Leveraged buyout Private equity
the firm of Kohlberg Kravis Roberts & Co. (KKR) was in negotiation with lenders regarding the refinancing of a $1.2 billion bridge loan due to be repaid in full by February‚ 1991. The bridge loan was part of the $24 billion financing of KKR’s leveraged buyout of RJR Nabisco in early 1989. Originally‚ KKR had planned to retire the loan with the proceeds of a $1.25 billion public offering of senior debt. However‚ in December‚ 1989‚ Moody’s failed to give the issue an investment-grade rating. Moody’s
Premium Debt Leveraged buyout Balance sheet
The 2009 Edition of Best Lawyers in America named our following partners in the areas of Leveraged Buyouts‚ Private Equity Law or Private Funds Law: Christopher Aidun‚ David Duffell‚ Shukie Grossman‚ David Kreisler‚ Steven Peck‚ Charles Robins‚ Jay Tabor‚ Jeffrey Tabak‚ Doug Warner‚ Glenn West‚ James Westra and Barry Wolf Weil Gotshal advised Lehman Brothers Holdings Inc. in connection with the management buyout of Neuberger Berman and certain of its alternative asset businesses Weil Gotshal advised
Premium Private equity
The Leveraged Buyout of Cheek Products Finance 620 – Summer 2010 Group 1 Danielle Kaufmann Vivake Persaud Jessica Friedman Loria Mcleod David Lawrence Background: Cheek Products‚ Inc. began as a snack food company but has since expanded into different types of business through acquisitions‚ such as home security systems‚ cosmetics‚ and plastics. The company has not been performing as expected in recent years‚ and management has not tried to improve operations in any way
Premium Stock market Leveraged buyout Stock
Michelle Seefeld Managerial Finance Learning Session 1 Written Assignment Chapter 1 Discussion Question 6 What document is necessary to form a corporation? A corporation is formed through articles of incorporation‚ which specify the rights and limitations of the entity (Block‚ Hirt‚ & Danielson‚ 2011). Web Exercise (pp. 22-23) In summary‚ the credo for Johnson & Johnson challenges the company to put the needs and well-being of the customers first. The former chairman for the company
Premium Stock Finance Financial ratio