Debt feast helps buyout firms through IPO gloom
07/10/2024 09:52
(The author is a Reuters Breakingviews columnist. The opinions
expressed are his own.)
By Neil Unmack
LONDON, Oct 7 (Reuters Breakingviews) - Dividend recaps,
where private equity managers pile debt onto a company to give
themselves a payday, are booming, with $17 bln in the US last
month. Since public offerings look tough, it’s a handy
cash-raising alternative. The trend will continue, if the
economy plays ball.
Full view will be published shortly.
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CONTEXT NEWS
Belron, a UK-based windshield repair group, issued some $9
billion of loans and bonds, of which about $4.7 billion will be
used to fund a dividend to shareholders, according to company
statements dated Oct. 2.
Belron is owned by listed family investment vehicle
D’Ieteren, as well as private equity groups including Clayton,
Dubilier & Rice and Hellman & Friedman.
(Editing by Liam Proud and Oliver Taslic)
((For previous columns by the author, Reuters customers can
click on UNMACK/
neil.unmack@thomsonreuters.com))