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Sentiment: Strong Buy
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BankUnited Declares Stock Offering
By Zacks Equity Research
1 hour ago
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On Tuesday, Florida-based BankUnited, Inc. (BKU) announced the offering of more than 10.3 million shares of its common stock by companies holding stakes in it. These companies comprise The Blackstone Group L.P. (BX), The Carlyle Group (CG), WL Ross & Co. LLC and Centerbridge Partners, L.P.
Later, on the same day, BankUnited announced that each share would be available at a price of $33.50 for the public. The stock offering is likely to close by Mar 7.
The Goldman Sachs Group, Inc. (GS) is serving as underwriter for the aforementioned offering. As per terms of the deal, the underwriter can opt to buy an additional 1.5 million shares in the offering.
Now, why these stakeholders want to vend their ownerships? This could be due to the fact that these stakeholders are not seeing further prospects in BankUnited shares.
On observing BankUnited’s stock price movement, we find that it is currently trading around its 52 week high. The impressive price performance was primarily driven by the overall improvement in the economic scenario wherein the major benchmarks are trading at a high level. Apart from this, BankUnited has delivered positive earning surprises in the trailing four quarters with an average beat of 11.8% which further boosted investors’ confidence.
Now given the innate volatile nature of the stock market, the stakeholders initiated this offering to take advantage of the bull run by booking profit.
Following the news release after the closing bell on Mar 4, BankUnited’s stock fell nearly 1%. However, nothing conclusive can be inferred till we observe the company’s share price movement during the next trading session.
Sentiment: Strong Buy
The budget also aims to cut certain loopholes. Private-equity firms Carlyle Group (NASDAQ: CG ) , Apollo Global Management (NYSE: APO ) , and Blackstone Group (NYSE: BX ) won't like provisions ending the tax preference for carried interest. Even though Carlyle, Apollo, and Blackstone won't necessarily see their corporate profits affected, the ripple effect could have negative effects in the industry and have implications for compensation costs and other expenses. In addition, S corporation shareholders and other professional services firms will no longer be able to shelter income from payroll taxes by splitting it into salary versus business profits.
well investors make all the money..no use you posting here as you are usually wrong.. good luck to you..ciao
Sentiment: Strong Buy
go to the SS board...no need responding to gossip on other subjexts ;;just put them on Ignore like I do.. ciao
surprise you are still here after you sold several times and didnt like the stock.. who cares if you post you sold the stock when you didnt post when you bought.....sounds like a one way trade.....no need posting here
Sentiment: Strong Buy
as indicated on Fidelity trading site I use''stocastics still in buy mode...http://finance.yahoo.com/q/ta?t=1y&l=on&z=l&q=b&p=m50%2Cm100%2Cm200%2Cv&a=m26-12-9%2Cr14%2Css&c=&s=ipci&ql=1
There's been a very significant rally," said Rick Meckler, president of investment firm LibertyView Capital Management in Jersey City, New Jersey. "If you need an excuse to sell, this is a good one."
Russian stocks and bonds
skeptical about the posts on Fly on the Wall....maybe someone was trying to run up the stock which them did until close to the close when maybe sold out not making any profil...just strange action and the close alot higher than the previous trade..
Blackstone’s biggest gain was on paper. Hotel chain Hilton Worldwide Holdings Inc. (HLT)’s initial public offering in December has yielded a more than $10 billion profit, which will be unrealized until Blackstone begins selling shares.Mr. Schwarzman, who has yet to sell any Blackstone shares since the firm's initial public offering, holds about 22% of the firm's stock......“We’re in a really marvelous position and I don’t worry about growth -- it’s just coming at us,” Schwarzman said in a television interview yesterday. “I worry about delivering great investment products for investors. And if you do that all the time and you do it at scale, good things will happen to you.”
JP Morgan call on Freescale adds confusion 02/28 10:47 AM
By Natalie Harrison and Lynn Adler
NEW YORK, Feb 28 (IFR/RLPC) - JP Morgan CEO Jamie Dimon delivered a confident message at the bank's global high-yield conference this week, telling attendees it would be no more cautious than any other Wall Street bank when it comes to lending, according to investors present at the event.
But the bank's decision not to extend a revolving credit facility for Freescale Semiconductor (FSL:$22.83,00$-0.12,00-0.52%) earlier this month, a move confirmed by two market sources, appeared to send a very different message to the market.
It was deemed an unusual decision mainly because revolvers are usually private deals with relationship banks. By not extending the maturity of the revolver, JP Morgan passed up fees, which some bankers said did not make sense as it still had to honor the existing facility.
JP Morgan declined to comment.
The revolver got done - and at a larger size. Citigroup, Goldman Sachs, Credit Suisse, Deutsche Bank, Barclays and Morgan Stanley all committed to the deal, which was increased by up to USD50m to a total of up to USD450m.
The decision demonstrates how carefully banks are scrutinizing which loans, and how many, they will commit to - and there is clearly a ripple effect from the leveraged lending guidance issued about a year ago by regulators.
Some reckon JP Morgan made the correct bet on Freescale, which was taken private by sponsors Blackstone, Carlyle, TPG and Permira in 2006 in one of the biggest leveraged buyouts of all time.
Although the company listed five years later, its leverage remains high.
"You could say JP Morgan has been smart," said one senior banker at a rival bank. "Maybe it made a judgment and thought the company was not a big client, and therefore, not worth doing. The bank's the largest underwriter of leveraged loans in the market, so this is only natural."
Freescale and its private equity owners were either not immediately available or declined to comment.
SUBSTANDARD REPORT CARD
The rationale behind JP Morgan's decision, the sources said, was that the loan could have been considered "substandard" - one of the definitions that regulators have applied to "criticized" or "non-pass" loans under their guidelines.
Another category - "special mention" - is more common. Considered less risky, those loans are also less likely to rile regulators, bankers said.
"It's a bit like a report card. If you're going to have bad marks, you'd rather have more Bs than Cs," said the banker. "The Freescale revolver, a C grade, was substandard already."
A loan may be criticized if companies are not able to amortize or repay all of their senior debt from free cashflow or half of their total debt in five to seven years. Leverage levels exceeding six times debt to Ebitda after asset sales are also viewed as problematic.
According to Moody's latest report on Freescale, even after it pays down debt with proceeds of a recent share offering, adjusted debt to Ebitda will still remain in the low seven times range.
The guidelines aim to prevent a return to reckless underwriting practices, but until recently the market believed regulators would be more focused on new leveraged buyouts. In fact, the implications of the greater scrutiny are far wider than that.
"The guidance does capture refinancing, though not necessarily an amendment," said Tess Virmani, assistant general counsel at the Loan Syndications and Trading Association.
The Federal Reserve, the FDIC and the Office of the Comptroller were either not immediately available or declined to comment.
Even so, some argued JP Morgan was being too conservative, and said its decision was more about the bank wanting to be seen to be toeing the line, and a desire to keep out of the headlines after paying a USD13bn fine last year to settle multiple government claims over dealings in mortgage securities.
"When he was asked at the conference whether JP Morgan would react differently because of its recent issues, Dimon said he expected all banks to behave the same," said one investor who attended the leveraged finance gathering in Miami.
There is, nonetheless, growing annoyance among bankers who are convinced that regulators have not thought through the whole process.
"They have said that they don't want us to stop lending to companies that are in trouble and need financing. But there are lots of grey areas, and it's very frustrating," said the banker.
How this will all play out remains to be seen. The regulators publish report cards on banks' loans in what is known as a Shared National Credits Program to help communicate what are, and what are not, quality loans.
The SNC last year showed criticized and classified assets remained at elevated levels at 10% and 6.2% respectively in 2013. The volume of criticized assets increased 2.4% to USD302bn, but as a percentage of total commitments, the criticized asset rate fell from the year before.
One banker said it would be interesting to see the reaction to fines doled out if banks are too reckless. Others said that fines were unlikely.
"I don't think the punishment will be fines. There are lots of ways for regulators to turn up the heat. Just coming into the bank to meet the risk people, and telling them they are unhappy would be enough to get banks to stop," said a banker.
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