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Stock impact report

PE Firms Flood Junk Debt Market to Pay Themselves [Yahoo! Finance Canada]

Franklin Resources, Inc. (BEN) 
Last franklin resources, inc. earnings: 4/30 08:30 am Check Earnings Report
Most Read from Bloomberg Their efforts come as the private equity machine hits snarls at nearly every turn: Attractive takeover targets are sparse and it's harder to cash out old investments and deliver the returns once promised to pension managers, foundations and wealthy individuals. To quell impatient investors, buyout shops are increasingly layering extra borrowing on their companies and funneling the proceeds of debt sales to their stakeholders instead. “All the stars are aligned for dividend recaps; rates are coming down, spreads are tight, the market is open — yet the IPO market and M&A are still subdued,” Bill Zox, a portfolio manager at Brandywine Global Investment Management, said. “Investors want distributions, and dividend recaps can buy PE firms more time to wait for a better environment for exits.” Private equity firms have routinely used dividend recapitalizations to book profits and take skin out of the game after they acquire companies. Such deals can be seen a Show less Read more
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