BAC finally closed at HOD, after days of bears selling
this non stop. Big break out today Technically. It held well above yesterdays lows when bears tried selling it this morning, then went up all day, with only 10 cent shakeouts.
I bought 3000 shares as soon as they mentioned it on CNBC at $2.53. I decided to hold over night to catch the shorts who will scramble to cover thur. Stock closed strong and at the high of the day. Looking for a gap up over $3 thur. morning.
No idea why this stock has sold off lately. It seems a very safe LBO with a very strong buyer. Below is from a
Financial times article.
United Rentals LBO closing date could fall in late October-mid November
By Yana Morris in New York
Published: September 14 2007 13:46 | Last updated: September 14 2007 13:46
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United Rentals� LBO transaction has entered a silent period as shareholders await a voting day announcement. Pieces of the take-private puzzle still missing include an update on the go-shop period and a definitive proxy document which is expected to disclose final details of the financing package as well as background of the deal negotiation.
According to a previous report by dealReporter in July, United Rentals saw interest from strategic buyers while United Rentals was in talks with Cerberus. It was suggested that the delay on definitive merger documents has occurred not only because banks were negotiating the final details of the financing but also because United Rentals was hopeful of receiving an alternative bid from either Hertz or RSC. The go-shop period expired on 31 August.
With highly committed financing in place, the deal between United Rentals and Cerberus Capital could but is not required to close within days after shareholders vote, according to the preliminary merger agreement issued on 30 August. In the absence of the definitive merger document and the shareholder date, the sources on the deal could not agree on the exact timing of the closing, however they said they are aiming for late October as a potential closing date. Still, taking into account the preliminary merger document, the deal could also close during the marketing period so long as United Rentals is given three days notice or on the last day of the marketing period. There is no obligation to close the deal before the marketing period starts, allowing banks the opportunity to test market appetite for URI�s debt package.
Two insiders indicated the banks were likely to launch a marketing campaign for the LBO-related debt in November. However, the marketing period cannot start until two remaining conditions are satisfied � the shareholder vote and all agreed upon debt issuance documents.
There have been no talks of re-pricing or changes on key terms of the transaction, it is understood. However, banks are adding last features to the financing part of the deal to facilitate successful syndication of the LBO-related debt. With very few changes expected to the current terms of financing as unlike other LBO deals coming to the primary market, this deal was said to be �the closest to market�. It is expected that some new features will be listed in the upcoming definitive proxy document, possibly some type of performance related covenants.
Banks have had sufficient time to gauge the market�s appetite for URI�s debt, according to the source. �We, basically, were structuring financing in the middle of the credit turmoil with people telling us what will and will not work in this market,� the source said. He further added parts of the debt package could be sold within the first week of November due to significant interest from a number of specialized buyers in the credit market.
The LBO is expected to be financed through USD 6.5bn in debt financing (not all of which is expected to be drawn at closing) provided by Bank of America, Credit Suisse, Morgan Stanley and Lehman and consisting of a senior first lien facilities with a maximum availability of USD 2.5bn, a secured bridge facility of USD 2.35bn and unsecured bridge facility of USD 1.65bn. Cerberus will provide USD 1.5bn in equity.
Anyone know why this thing is acting so ugly today. There are no offers here, just BIDS getting hit. I really hope they have good things to say tomorrow or we will all be in the house of PAIN
This stock is acting like a DOG today, sellers are hitting the bids instead of just offering there shares for sale. Hope they have good things to say tomorrow.