Commodity Channel Index
|Bid||49.70 x 3000|
|Ask||49.71 x 900|
|Day's Range||49.27 - 51.30|
|52 Week Range||19.46 - 55.39|
|Beta (5Y Monthly)||1.67|
|PE Ratio (TTM)||N/A|
|Earnings Date||Jul 29, 2020 - Aug 03, 2020|
|Forward Dividend & Yield||1.68 (3.35%)|
|Ex-Dividend Date||May 15, 2020|
|1y Target Est||49.00|
(Bloomberg) -- The Fresh Market Inc. has regained some lost ground after years of falling behind bigger rivals, a rare success story when heavily indebted retailers and restaurants are getting battered by pandemic shutdowns.If anything, the 159-store chain may be getting a boost from the Covid-19 outbreak as consumers demand more healthy and organic food to eat at home, according to analysts.First-quarter sales at the high-end grocery store backed by Apollo Global Management Inc. jumped 12% from a year earlier, as lockdowns set off panic buying and some competitors temporarily shut down, according to a company representative.Fresh Market’s aisles include cauliflower hummus, mushroom-asiago chicken sausages, Lacinato kale and vast selections of bulk dried fruits and nuts. Even with this gourmet array, it has struggled with too few sales and too much debt left over from Apollo’s 2016 leveraged buyout.Still, the chain managed to avoid the fate of some of its peers, with Fairway Group Holdings Corp. and Earth Fare Inc. among chains that filed for bankruptcy before the pandemic took hold. Now grocers like Fresh Market are getting more business as eateries and bars remain partially or completely closed.“They are filling the void left by restaurants,” said Miguel Gomez, director of Cornell University’s Food Industry Management Program.Fresh Market may have an edge over some larger supermarkets with its focus on organic and high-quality products, Gomez said. U.S. organic produce sales soared 22% in March at the pandemic’s start, according to an Organic Produce Network and Category Partners report.The potential for a turnaround has caught the attention of investors. Fresh Market’s 9.75% first-lien notes due 2023 are the second-biggest gainers year-to-date in the ICE BofA index of distressed companies, soaring to about 86 cents on the dollar. That’s up from a 39-cent low in March.While the private company doesn’t publicly report earnings, Fresh Market told bondholders that first-quarter sales were strong in an April 15 investor call, said the company representative.Smaller StoresFresh Market operates in 22 states from its headquarters in Greensboro, North Carolina, according to its website. The stores are smaller than traditional rivals, ranging from 18,000 to 23,000 square feet, which is about half the size of a typical supermarket.It’s controlled by Apollo, the giant New York private-equity firm, which paid about $1.4 billion to buy the chain in 2016 and financed it largely by floating new debt. But investors were shaken in 2017 after online behemoth Amazon.com Inc. bought Whole Foods Market, which then slashed prices.About half of Fresh Market’s stores were within five miles of a Whole Foods outlet, and it closed 15 locations in 2018. Last March, Fresh Market replaced Chief Executive Officer Larry Appel after two and half years with Jason Potter, 49, citing his turnaround experience.Potter spent 26 years at Canada-based Sobeys Inc., where he oversaw about 800 outlets under the Sobeys, Safeway, Foodland and Thrifty banners, according to a statement. He was one of the top executives who led a restructuring project at Empire Company Ltd., which owns Sobeys, that saved $500 million by the end of fiscal 2020. The project is expected to top its goal, Empire said in a statement.New HireIn May, Potter hired Kevin Miller, the chief marketing officer at organic retailer Natural Grocers Inc., for a similar role at Fresh Market.Potter wants to make the store a convenient “go-to” for perishables and interactive customer service, he said when he was hired. The company has promoted its “Market Meal Kits” during the pandemic, which come with packaged ingredients and step-by-step recipe instructions.The company also refinanced $125 million in loans in March, pushing out some of its debt repayments for five years. It’s still carrying about $935 million in debt, according to data compiled by Bloomberg.Click here for Fresh Market’s debt calendarFresh Market reported $141 million of unrestricted cash and $26 million of restricted cash on its balance sheet at the end of the first quarter, according to a person with knowledge of the results.Increased demand for pre-packaged food could help with the turnaround effort, said Anne Palmer, director of Johns Hopkins University’s Food Communities & Public Health program. “They appeal to people who are coming in and trying to get a fair number of their meals prepared,” Palmer said. “They dedicate a lot of their space to prepared meals and deli foods.”Analysts have speculated that the nationwide surge in sales for some retailers may have been due to people stocking up for the pandemic, and they’ve wondered if the gains may peter out.“Business was kind of booming during the peak period of Covid because people were panicking a little bit,” Palmer said. “But I do wonder if they will be able to sustain their growth.”For more articles like this, please visit us at bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.
Issuance across the US syndicated loan market plummeted in the second quarter as the asset class navigated a slow recovery from the novel coronavirus that left borrowers scrambling for cash to keep their businesses alive while economies around the world gradually reopen. Companies from beleaguered sectors, including United Airlines and cruise ship operator Carnival Cruise Line, collectively raised billions of US dollars in new, costly loans to bolster liquidity amid a pandemic that forced many consumers to shelter at home throughout the second quarter. The wary buyside limited its exposure to low, Single B rated loans that are subject to fall to Triple C, which is just notches above a default.
Apollo Global Management, Inc. (APO) (together with its consolidated subsidiaries “Apollo”) and Merx Aviation (“Merx”), a global aircraft leasing, management and finance company, announced the completion by certain funds managed by affiliates of Apollo and Merx of a sale and leaseback transaction with Delta Air Lines of ten Airbus A220-100 aircraft. The aircraft, manufactured in 2019, were acquired by an aviation platform established by Apollo, which invests in a diverse set of aircraft types, vintages and jurisdictions and is serviced by Merx.
(Bloomberg) -- For the better part of a decade, private equity firms layered increasing amounts of leverage onto buyouts in a bid to amp up their returns. Tech Data Corp. appears to be one of the exceptions.Apollo Global Management Inc.’s $6 billion take-private of the distributor of technology products only saddled the company with debt worth 2.5 times a key measure of its earnings, according to the private equity firm. Credit rating companies have said thin profit margins limit the leverage the business can support, especially in a crisis.The financing, agreed before the coronavirus pandemic, was structured in an unusual way for a buyout. It relied on loans backed by Tech Data’s receivables and inventory, which include iPhones, Cisco servers, printers and scanners stored in any of its 11 logistics centers around the world.Those asset-based loans, which are often used by retailers, are considered some of the safest for banks to underwrite, as they give creditors a direct claim on the company’s property as opposed to its future cash flow. The debt also gives Tech Data more financial flexibility, and is better suited to the company’s working capital needs.But it’s unlikely to become a new blueprint for the industry.“I don’t think this is going to be replicated by a lot of other sponsors, because it limits the amount of leverage you can put on a business,” Matt Nord, who co-leads the private equity business at Apollo, said in an interview.Credit rating firms, which are typically more conservative in their calculations, estimate Tech Data’s leverage will be higher. Moody’s Investors Service said it expects the ratio to increase to the high 4 times range over the next couple of quarters because of the global recession.“Maintaining very good liquidity is critical given adjusted operating margins of less than 2% and the need to manage working capital swings throughout the year,” Moody’s analyst Carl Salas wrote in a note this month.Still, Tech Data’s leverage is lower than what is typical on the most aggressive deals, which would be closer to 6 times or higher.Private equity firms have been able to load more debt onto buyouts in recent years, reveling in ultra-low interest rates. That’s come back to haunt some companies that are struggling to make it through Covid-19, while some banks have scaled back underwriting risk.Read more: Wall Street puts guardrails on LBO deals after crisis markdowns“When you have a lot of debt, you just have less margin for error,” said Nord. “Over the last 5 or 10 years the economy has muddled along, and we didn’t really have these big shocks - until we did.”Apollo said it turned down more aggressive financing packages from some of its banks for the deal.“A number of financial institutions pitched us a traditional bank and bond financing structure which was sub-optimal for our investment thesis,” Robert Kalsow-Ramos, a partner at Apollo said in the interview.Apollo contributed $3.75 billion of equity and sold about $2 billion of asset-based loans to institutional investors and banks earlier this month to finance the deal.The acquisition of Tech Data closed Tuesday after a nearly five-year long pursuit for Apollo, and ultimately ended with the private equity firm paying $145-per-share -- beating Warren Buffett in an auction process. When Apollo first began to meet with Tech Data, the firm was worth less than $60 a share.Apollo plans to invest $750 million of Tech Data’s cash flow over the next five years to expand its cloud platform, business analytics and security.For more articles like this, please visit us at bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.
Chief Executive Officer Rich Hume will continue to lead Tech Data from its headquarters in Clearwater, Florida. “Tech Data is a global, market-leading company with an excellent management team and significant opportunities for expansion,” said Matt Nord, Co-Lead Partner of Private Equity at Apollo.
Tiger Merger Sub Co. (the “Offeror”), an affiliate of certain investment funds managed by affiliates of Apollo Global Management, Inc. (together with its consolidated subsidiaries, “Apollo”), announced today that it has further extended the Expiration Date (as defined in the Offer to Purchase (as defined below)) for the previously announced Tender Offers and Consent Solicitations (each as defined below) relating to Tech Data Corporation’s (i) 3.700% Senior Notes due 2022 (the “2022 Notes”) and (ii) 4.950% Senior Notes due 2027 (the “2027 Notes” and, together with the 2022 Notes, the “Notes”). The Expiration Date was previously extended to June 26, 2020. As a result of this further extension, the Expiration Date will now be 5:00 p.m., New York City time, on June 29, 2020 (unless further extended or earlier terminated).
Albertsons, the nation’s second largest grocer, went public on Friday, becoming one of the few recent IPOs to deliver a lackluster first day. Shares of the grocer traded briefly above their $16 initial public offering price. The poor performance comes after Albertsons raised $800 million late Thursday.
Moody's Investors Service, ("Moody's") downgraded CEC Entertainment, Inc.'s ("CEC") probability of default rating (PDR) to D-PD from Caa3-PD following the company's announcement  that it has commenced voluntary Chapter 11 proceedings. Please refer to the Moody's Investors Service Policy for Withdrawal of Credit Ratings, available on its website, www.moodys.com.
S&P; Dow Jones Indices will make the following changes to the S&P; MidCap 400 and S&P; SmallCap 600 effective prior to the open of trading on Tuesday, June 30:
Volkswagen AG is in talks to acquire French car rental firm Europcar Mobility Group SA , in a deal that would allow the German car maker to better capitalize on its fleet, people familiar with the matter said on Tuesday. The acquisition would come as Europcar struggles to cope with the economic fallout of the COVID-19 pandemic, which has weighed on travel around the world and sapped demand for car rentals. It would represent a reversal for Volkswagen, which sold Europcar to investment firm Eurazeo SE in 2006.
Moody's Investors Service ("Moody's") downgraded Terrier Media Buyer, Inc.'s (doing business as Cox Media Group (CMG)) senior credit facilities rating to B1 from Ba3. Concurrently, Moody's assigned a B1 rating to CMG's newly issued $150 million incremental 2026 term loan B and affirmed CMG's B2 corporate family rating (CFR), B2-PD probability of default rating (PDR), and Caa1 rating on the company's 2027 senior unsecured notes.
Intrado’s Health Advocate, a leading provider of health advocacy, navigation and integrated benefits programs, announced today that it will provide health advocacy and navigation services to the State of Connecticut’s more than 60,000 employees covered under the state’s benefits program, in addition to affiliate partners across the state. In addition, Health Advocate’s team of experienced Personal Health Advocates will support employees and their family members enrolled in the State of Connecticut’s newly introduced preferred provider network, helping to identify providers and facilities in the network, schedule appointments, and provide quality and cost information.
Moody's Investors Service ("Moody's") downgraded the corporate family rating ("CFR") and probability of default rating of intermodal chassis equipment provider Drive Chassis HoldCo, LLC ("Drive Chassis") to B3 and B3-PD, from B2 and B2-PD, respectively, and confirmed the Caa1 secured second lien debt rating. The ratings outlook is negative.
Moody's Investors Service, ("Moody's") has downgraded Shutterfly, LLC's ("Shutterfly" or the "company") Corporate Family Rating (CFR) to B3 from B2, Probability of Default Rating (PDR) to B3-PD from B2-PD, senior secured first-lien bank credit facilities ratings to B2 from B1, senior secured notes rating to B2 from B1 and senior unsecured notes rating to Caa2 from Caa1. The outlook was revised to negative from stable.
(Bloomberg) -- The scrappy world of distressed-debt investing has become even more adversarial in the pandemic era, with borrowers battling creditors and creditors battling one another. It’s no place for Goldman Sachs Group Inc.The bank spells this out clearly in marketing materials for its new opportunistic credit fund under the heading, “What We Do/What We Do Not Do.” While determined to capitalize on the distortions created by Covid-19 with a war chest of $5 billion to $10 billion, Goldman says it won’t “act as vulture investors.”The presentation, a copy of which was obtained by Bloomberg, also stipulates that Goldman won’t “intentionally execute a ‘loan-to-own’ strategy” or “seek to derail a process/pursue holdup value” or “actively trade in open market securities.”Those no-nos, normally standard ploys in the opportunistic-credit playbook, are the price Goldman pays for running an investing business inside an investment bank. By limiting its options and staying out of confrontational situations, the firm is ceding ground to feistier players such as Apollo Global Management Inc., Elliott Management and Aurelius Capital Management.Principal Investing“Having flexibility in your mandate is essential to investing across a cycle,” said Mudrick Capital Management’s Jason Mudrick, who oversees $2.5 billion and is among the best-performing hedge fund managers in credit. “What’s attractive today may not be two years from now.”Chief Executive Officer David Solomon wants to rebuild Goldman’s principal investing business into a machine that can raise billions of dollars for private equity and credit bets, generating a steady stream of high-margin revenue. But if the Wall Street firm hopes to keep winning merger mandates and underwriting stock and bond offerings, it can’t deploy capital in ways companies might perceive as self-interested and hostile.The Goldman approach, as explained in the slide deck for West Street Strategic Solutions I, will be that of a “trusted, sought-after partner” to the managements of cash-starved companies. The firm aims to deploy its capital mainly as a lender in North America and Europe in “complex situations beyond the scope of traditional providers.” It’s targeting gross returns before fees of 15% to 20%.Contrast that with Apollo, the largest manager of alternative credit. As cofounder Josh Harris said in a recent interview, Apollo is repositioning its $23.5 billion private-equity fund expressly to take control positions in distressed borrowers. It plans to buy up discounted debt and convert it to equity through a balance-sheet restructuring. Harris said he expects returns “well over” 20%.There’s room for both. In a report this week, UBS AG estimated that $500 billion of debt globally is distressed or in need of fresh liquidity and said default rates are likely to accelerate. Many companies and households haven’t benefited from government aid programs and remain desperate for cash.“There’s a huge need across our corporate client base,” Julian Salisbury, Goldman’s head of principal investing, said in an April interview. “Everyone is drinking from the same fire hose.”The rules of the game in this latest cycle of distress are being rewritten daily, and they’re anything but genteel. One increasingly common move involves shifting collateral out from underneath a loan. In another, creditors cut side deals to gain seniority in the capital structure, even if it means recovering less money.Faced with the prospect of losing out in a loan-to-own scenario, some companies may choose to work with Goldman because it professes to be a friendlier source of capital. As the pitch book for its fund states, Goldman is offering to “work constructively with management to resolve critical issues.” It’s planning to make 25 to 40 investments, each between $75 million and $500 million, over the eight-year life of the fund.To participate, clients have to commit a minimum of $5 million and pay fees of 1.5% plus one-fifth of profits. Goldman pledges in the presentation to provide some capital from its own balance sheet, subject to regulatory restrictions, and says employees of the firm will supply about $250 million.The inherent conflicts between investing and investment banking are one reason many of Goldman’s rivals on Wall Street have either withdrawn from private equity, like JPMorgan Chase & Co., or exited asset management altogether, like Citigroup Inc.Since 2009, Goldman has invested $15.7 billion in situations similar to those it’s pursuing with the new fund, generating a 21% return before fees, according to the slide deck. Of the 60 positions it took, only two ended in default.For more articles like this, please visit us at bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.
Moody's Investors Service, ("Moody's") has affirmed Ventia Pty Limited's Ba2 corporate family rating. At the same time, Moody's has affirmed Ventia Finco Pty Limited's Ba2 senior secured bank credit facility rating.
(Bloomberg) -- Creditors to CEC Entertainment Inc., which runs Chuck E. Cheese and Peter Piper Pizza, are weighing restructuring options including bankruptcy as the company seeks to get through the pandemic that has shuttered its locations.Lenders and bondholders are considering putting new money into the business to keep it afloat, according to people familiar with the matter who asked not to be identified discussing a private matter. Both in and out-of-court options to tame the company’s debt load are being discussed, said the people, noting that the situation is evolving as states across the country mull whether to lift stay-at-home orders.A Chapter 11 bankruptcy filing would allow CEC, acquired by private equity firm Apollo Global Management Inc. in a 2014 leveraged buyout, to keep some locations operating and permanently close weaker ones to minimize costs. Chuck E. Cheese alone has over 600 outlets, which would be evaluated for closures as part of the potential court-supervised process, the people said.Representatives for CEC and Apollo didn’t immediately respond to requests for comment.New MoneyA group of bondholders has suggested putting $100 million of new money into the firm, extending maturities and adding a payment-in-kind option to give the firm more flexibility, said the people. While a proposal was sent to the company, holders haven’t been asked to sign non-disclosure agreements, the people added. PIK notes allow companies to borrow more in lieu of making interest payments, which can help firms facing liquidity pressure.Lenders also organized with advisers and are contemplating putting in new money to support their investment in the company. The group hasn’t sent any formal proposals to CEC, but some parties have discussed new financing of around $200 million as an option to rework the balance sheet, the people said.The bondholder group is working with Ducera Partners as financial advisers and King & Spalding as legal counsel, while the loan holders are being advised by investment bank Houlihan Lokey Inc. and law firm Akin Gump Strauss Hauer & Feld, the people said.CEC is getting its own help from restructuring lawyers at Weil, Gotshal & Manges, as well as investment bankers at PJT Partners, said the people.Representatives for PJT, Akin, Houlihan and King & Spalding declined to comment. A representative for Ducera didn’t immediately provide comment.CEC is negotiating with its debt investors ahead of a $1.9 million loan payment due at the end of June. It also has coupon payments due in mid-August on its bond maturing in 2022.Bonds SinkCEC said in April that its comparable store sales for the three months through March dropped 22% and it expected its company-operated venues to sustain losses while on-premise dining and arcade attractions remained closed.Entertainment and leisure have been among industries hardest hit by the coronavirus, with locations shut and consumers staying at home under state and federal guidelines. Though restrictions are starting to ease, it’s unclear how many consumers are ready to return to family entertainment destinations.Chuck E. Cheese’s $760 million term loan trades around 60 cents on the dollar, according to data compiled by Bloomberg, down from near par as recently as March. Its bonds have sunk to just 9 cents on the dollar from near par at the beginning of this year, according to Trace pricing data.A plan to take CEC’s parent company Queso Holdings Inc. public through a merger with shell company Leo Holdings Corp. was abandoned last year -- a deal that would have valued the firm at about $1.4 billion.Read more: Apollo deal to take Chuck E. Cheese owner public falls apart Irving, Texas-based CEC was originally incorporated under the name ShowBiz Pizza Place Inc. The company changed its name in 1998 to CEC Entertainment and today its franchisees operate a system of more than 120 Peter Piper Pizza venues as well as the Chuck E. Cheese sites, with locations in 47 states and 16 foreign countries and territories, according to its website.CEC Entertainment reported its full-year and fourth-quarter earnings in March, with $34.8 million of cash on hand at year-end. It drew down its entire credit facility in March.For more articles like this, please visit us at bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.
Prudential stock surged on Thursday as the British insurer sold a minority stake in its U.S. arm Jackson to Apollo Global-backed retirement services company Athene for $500 million.
Prudential sold a minority stake in its U.S. business, Jackson, to Apollo Global-backed Athene Holding for $500 million, the insurer said on Thursday, in the first phase of its plan to create an independent U.S. business. The end goal was to create an independent U.S. business, Prudential said, without giving details on how much of Jackson it still wanted to keep. "This agreement is a key step forward in meeting our strategic objectives for Jackson," Chief Executive Mike Wells said in a statement.
Under the terms of the agreement, Athene will reinsure a $27 billion in-force block of fixed deferred and fixed indexed annuities. Athene will also make a $500 million equity investment in Jackson, representing an 11% stake in the company, subject to customary closing conditions1.
Tiger Merger Sub Co. (the “Offeror”), an affiliate of certain investment funds managed by affiliates of Apollo Global Management, Inc. (together with its consolidated subsidiaries, “Apollo”), announced today that it has further extended the Expiration Date (as defined in the Offer to Purchase (as defined below)) for the previously announced Tender Offers and Consent Solicitations (each as defined below) relating to Tech Data Corporation’s (i) 3.700% Senior Notes due 2022 (the “2022 Notes”) and (ii) 4.950% Senior Notes due 2027 (the “2027 Notes” and, together with the 2022 Notes, the “Notes”). The Expiration Date was previously extended to June 16, 2020. As a result of this further extension, the Expiration Date will now be 5:00 p.m., New York City time, on June 26, 2020 (unless further extended or earlier terminated).
(Bloomberg) -- Apollo Global Management Inc. and Angelo Gordon & Co.’s Ryan Mollett are renowned on Wall Street for finding creative ways to wring money from distressed companies at the expense of other lenders.But when it came to Serta Simmons Bedding, they got a taste of their own medicine, after the struggling mattress maker decided to pass on their rescue financing package. The company instead negotiated with mutual funds and collateralized loan obligations that usually take a back seat in these transactions.Apollo and Angelo Gordon are suing to block the deal, which they say will hurt them. Still, peers across the industry can’t resist pointing out the irony that the duo, in the middle of plotting another one of their asset-grab trades, were caught flat-footed.Fights like this one are becoming increasingly common as the slowing global economy tips more companies into distress. They’re also getting more acrimonious, with lenders and owners bickering over how to divide shrinking pies.A representative for Apollo said its proposal with other lenders fully complied with the letter and spirit of the company’s credit agreements, while the defendants are attempting to violate the agreements in an unprecedented manner. Representatives for Angelo Gordon and Gamut Capital Management LP, another one of the plaintiffs, declined to comment, as did Doraville, Georgia-based Serta Simmons.Restructuring DebtSerta Simmons, owned by private equity firm Advent International Corp., negotiated with a group of lenders including Eaton Vance Corp. and Invesco Ltd. to essentially forgive some of the company’s debt in exchange for allowing the firms to fare better than other creditors if the mattress maker goes bankrupt. The investors also agreed to lend $200 million of new money to the company. The transaction included a debt swap, where the investors agreed to trade their loan holdings for a smaller amount of new debt that has the first claim on assets if the mattress maker fails.Apollo, Angelo Gordon and Gamut, like Eaton Vance and Invesco, were investors in the company’s first-lien loans, giving them all the first claim on the mattress maker’s assets if it went bankrupt. After the new financing, investors including Eaton Vance and Invesco have what is known as a superpriority, meaning they essentially jumped in line ahead of other lenders.That shift amounts to a “brazen collateral grab,” according to Angelo Gordon, Apollo and Gamut. In their lawsuit, they said the transaction was a violation of their lending agreements, and that a deal like this could damage the broader loan market.According to Serta Simmons, the deal with Eaton Vance, Invesco and other lenders was better for the company than the one contemplated by Apollo and Angelo Gordon.When Serta Simmons asked lenders for help in April, Apollo and Angelo Gordon helped devise a proposal to front $200 million -- provided the new debt was secured with intellectual property and licenses. The assets would be transferred to a special subsidiary that lenders wouldn’t be able to seize if the company failed, a maneuver known as an “asset-drop down.”In a court document responding to the firms’ lawsuit on Tuesday, Serta Simmons said, “Plaintiffs complain of the company changing the loan market when it is plaintiffs that would have had the company pursue an asset-drop down strategy that is the hallmark of aggressive borrower tactics in complex finance.”Fair Play?When Mollett, Angelo Gordon’s global head of distressed and corporate special situations, was at Blackstone Group Inc.’s GSO Capital Partners, he put together a similar transaction for retailer J. Crew Group Inc. The seller of preppy clothing moved its intellectual property, including the J. Crew brand, to a subsidiary, to borrow against it, triggering litigation that ultimately affirmed the company’s right to complete the transaction.Mollett also shepherded a different kind of transaction involving credit-default swaps tied to homebuilder Hovnanian Enterprises Inc. which caused a storm in the credit-derivatives market and sparked discussions on the legality and ethics of such moves.Apollo worked on a debt deal for Caesars Entertainment Corp. that transfered valuable assets from its operating unit to other parts of the casino company before that unit, Caesars Entertainment Operating Co., filed for bankruptcy in January 2015.The actions were at the heart of subsequent lawsuits by angry bondholders who claimed it created a “good Caesars” and a “bad Caesars,” the latter of which would be put in bankruptcy where bondholders would be forced to accept less than they were owed. While the deals were disputed at the time by lenders, they were never found to be illegal.(Updates with Serta location, ownership in fifth and sixth paragraphs.)For more articles like this, please visit us at bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.
Intrado’s Health Advocate, a leading provider of health advocacy, navigation and integrated benefits programs, announced today the introduction of a comprehensive set of new solutions designed to support employers as they and their employees prepare to return to the workplace. As organizations begin this transition, safety and health are top of mind, and Health Advocate’s clinically driven solutions are designed to meet employers’ ongoing needs related to the COVID-19 pandemic.
(Bloomberg) -- Apollo Global Management Inc. is seeking to start its own credit investment business in India as the U.S. alternative asset manager plans to end a joint venture with ICICI Bank Ltd., according to people familiar with the matter.The New York-based firm plans to stop putting new money into Aion Capital Partners and exit its existing investments over the next few years, the people said. Apollo has informed ICICI of its intentions, said the people, asking not to be identified as the information is private.Apollo, which manages about $316 billion of assets globally, opened its office in Mumbai in 2008, according to its website. It founded Aion Capital as a strategic partnership with ICICI Venture three years later. Aion had assets under management of $660 million as of March 31 and offered a net internal rate of return of 5%, filings show.ICICI Venture’s exclusive partnership with Apollo has matured, and the two parties agreed to change their relationship from April 1, a representative for the Indian company said in a statement. While Apollo will advise on Aion investments until the end of the fund’s term, the U.S. firm and ICICI Venture are free to independently pursue other opportunities, according to the statement.A representative for Apollo said the firm continues to see private equity, credit and real estate opportunities in India. The firm will invest in the country from various pools, including its global flagship fund, where it can be “the most effective and opportunistic” and partner with “the largest groups in the country,” Apollo said in a statement.Building out its private equity and credit platform in India is among Apollo’s growth strategies, according to a May investor presentation. Setting up a credit business could turn the U.S. asset manager into a direct competitor to ICICI Bank and other local lenders in helping companies with their debt. Its peers such as KKR & Co. are expanding their credit operations in the country, which is facing soured-debt woes as the economy slows.India is considering a new category of alternative investment fund, which will focus on acquiring stressed assets from banks and shadow lenders, Bloomberg News reported this week. The fund will be allowed to buy stressed assets directly from the banks and non-banking financial companies, people familiar with the matter have said.At present, investors can only access bad loans through securities issued by asset reconstruction companies. The new fund category will allow them to do so directly. This will give foreign investors, including global hedge funds, easier access to the mountain of local bad debt.(Updates to add Apollo’s global AUM in third paragraph.)For more articles like this, please visit us at bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.