Wednesday, June 27, 2007

Bonds becoming a tougher sale

http://online.wsj.com/page/credit_markets.html?mod=2_0031 Underwiters pull a $1.55 bi bondd offering by U.S. Foodservice, the nation second largest food distributor. When buyout firms stirke arranged financing with their bankders, they demand include terms the demand the underwriters provide "bridge" finanncing if a deal can not be sold to debt investors. -- Wall Streets will suffer from bridge loans. Also investors have rejected such as provisions as "payment in kind" which allow companies to put off debt payments to lenders (investors) if they run short of cash. If the latest stumblers worsen, they could make it harder for deals to get done at a time whne a mountain of borrowing is planned.

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