An alert ?
Heard on the Street - WSJ.com:
"GM's Allison Hits a Financing Snag
By SERENA NG and GINA CHON
July 24, 2007; Page C1
Allison Transmission, a highly profitable unit of General Motors Corp. based in Speedway, Ind., has gotten stuck in a traffic jam in the debt-financing market.
Wall Street firms postponed a sale of $3.1 billion in loans that would pay for the leveraged buyout of Allison by private-equity firms, said a person familiar with the matter. While the sale of Allison to Carlyle Group LP and Onex Corp. is highly likely to proceed, the trouble raising debt from investors complicates matters for the company and its bankers.
The snag reflects difficult conditions in the market for risky corporate loans and bonds and raises questions about the prospects of other buyout-related debt financings that need to be completed this summer. That includes a $20 billion loan deal for Chrysler Group. Cerberus Capital Management has agreed to buy a majority stake in the auto maker from DaimlerChrysler AG."
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