REPOST: Top Stories for the Week of Jan. 25th, 2010 (DEBT #1)


Submitted your top stories to SellYourCompany@RedHookCapital.com.  The top stories are as follows:

Private Equity Funds Move to Bankroll Builders @ ABCNews.com submitted by @SuzyRealEstate via Facebook Group.

Homebuilders look to investment funds for a lifeline as banks curtail construction lending.  It’s a scenario that plays out daily in this gambling mecca. But even by Las Vegas standards, some of the riskiest action last week was happening far from the shimmery din of slot machines and blackjack tables.  More than a dozen investment funds and a handful of lenders held court in a corner of the Las Vegas Convention Center, receiving a throng of homebuilders looking for a financial lifeline. Read more at ABCnews.com: http://abcnews.go.com/Business/wireStory?id=9649345

A debt-equity conundrum for all dealmakers @ FT.com 

submitted by John Marks via Facebook Group.

The Kraft-Cadbury deal, ever-hopeful investment bankers assure us, kicks off a new global wave of mergers and acquisitions. Maybe. But it also highlights a central issue in the M&A game these days – what we might term the debt-equity conundrum. Read more on Financial Times at: http://www.ft.com/cms/s/0/86105290-0951-11df-ba88-00144feabdc0.html?nclick_check=1
 
$4.4 Billion Default: Developer Hands Back Keys to Lender @SuzyRealEstate by Suzy Morris
The big story in commercial real estate is that the owners are handing the keys back to the lenders and walking away from Stuyvesant Town and Peter Cooper Village in Manhattan. They have been trying to refinance $4.4 billion in debt on the 11,200-apartment property for some months now. On January 8, they defaulted on $4.4 billion in loans ($3 billion in senior mortgages and $1.4 billion in secondary loans). They had also raised $1.9 billion in equity. The problem was that the latest appraisal put the value of the complexes at about $1.9 billion. Talk about underwater.  Read More:  http://suzymorrisrealestate.com/2010/01/4-4-billion-default-developer-hands-back-keys-to-lender/

 Cash is king

JD MORRIS VIEW: Finding it hard to find debt for deals seem to be the topic for the week.  A lot of people should have sold more than a year ago their companies.  Lots of companies will be looking to private equity and private debt/note groups to find funding.  Two of our portfolio companies used our private equity and private debt due to the bank taking to long to do the deal.  Let us pray for the days of 100% equity deals like the ones I did in the internet and telecom bubble.   Cash is King on doing deals fast!

Happy Investing & Networking,

JD Morris

LinkedIn:  http://www.linkedin.com/in/jdmorris

Send us your top story of the week via Facebook, Twitter, Linkedin, or e-mail us at SellYourCompany@RedHookCapital.com anytime. Visit us on:

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2 Comments

Filed under Investor Network, Sell Your Company

2 responses to “REPOST: Top Stories for the Week of Jan. 25th, 2010 (DEBT #1)

  1. Brian Sharp

    Keep the stories coming!

  2. John Marks

    Like the changes to your blog and look forward to seeing it soon on your website!

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