First Data LBO may be costly for banks involved
Source: MarketWatch - September 12, 2007
September 2007

Portfolio Manager Bradley Kane was quoted in an article by Alistair Barr on how the markets will accept large LBO loans given the turmoil of the summer.

Quoted from MarketWatch:

First Data is the largest LBO to hit the debt markets since subprime mortgage-inspired turmoil in credit markets in July and August. If the underwriting banks, led by Credit Suisse, can sell the $14 billion in loans, that will give a major boost to other LBOs that have to be financed in coming months. If they struggle, that would suggest credit markets remain in crisis and could dent the stock market again....

"The deal getting placed with investors rather than being kept on investment banks' books will be an important sign for the market," said Bradley Kane, portfolio manager at SCM Advisors LLC, a $14 billion San Francisco-based investment firm specializing in fixed-income markets.

"Placing a $14 billion, as currently structured, term loan in the current market would show that there's enough cash and willingness in the market to finance the forward pipeline," he added. "It will be a bellwether and will draw a line in the sand for companies with similar ratings and structural fundamentals."

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