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| A monthly eNewsletter on leveraged finance | July 2008 |
In this issue
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Until last summer’s credit crunch, the availability of financing on very favorable terms allowed companies facing a liquidity problem or a potential default to borrow their way out of trouble. With the lending window now all but shuttered, more and more businesses will find themselves forced to reach out to their creditors to restructure. |
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| Market Minute | Food Manufacturing | |||||||||||||||
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Watch Kevin Flaherty, Senior Research Analyst, Food, Beverage and Agribusiness, provide a brief overview of critical trends impacting the sector. For more in-depth market analysis in Food, Beverage and Agribusiness, plus more than 10 other industries — download GE Industry Research Monitors
here. |
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| Done Deals | Recent Transactions | |||||||||||||||
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Co-Lead Arranger •
C$400,000,000 • Cash Flow Credit Facility Based in Saskatchewan, Canada, Viterra is one of the country’s largest agribusinesses with operations across Western Canada, the United States and Japan. The C$400 million cash flow credit facility was used to refinance the company’s previous bridge loan. GE Capital Markets arranged the transaction. |
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Co-Lead Arranger • $140,000,000 • Debtor-in-Possession Facility Based in Hartsville, SC, Hilex-Poly is a manufacturer of plastic bags and film products. The company operates 11 manufacturing facilities across the U.S., including the world’s largest plastic bag recycling plant. The $140 million debtor-in-possession credit facility will be used for working capital needs as the company restructures under Chapter 11. GE Capital Markets arranged the transaction. |
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Joint-Lead Arranger • $125,000,000 • Asset-Based Credit Facility Kinney Drugs opened its first store in Gouverneur, NY, in 1903. Since then, the company has grown into a regional drug store chain, operating more than 80 locations throughout NY and VT. Kinney will use the $125 million asset-based credit facility to fund the company’s leveraged employee stock ownership plan. GE Capital Markets arranged the transaction. GE also provided the company with interest rate risk management. |
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| Capital Comic | © Randy Glasbergen | |||||||||||||||
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| Indices Watch | Trend Statistics | |||||||||||||||
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CFOs Plan to Invest in Growth Despite Economy Learn how companies plan to invest in growth despite economic uncertainty in this American Express / CFO Research survey.  Learn More |
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OCC Surveys Banks: Credit Standards Tightening Read about how more than 60 percent of banks are tightening standards after four consecutive years of easy credit. Learn More |
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Turnaround Pros Expect Debt Default Rates to Climb in 2009 Find out why nearly 70 percent of respondents to TMA’s annual Trend Watch credit poll anticipate a surge of defaults over the next three years. Learn More |
| Find financing now at www.gelending.com | |
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Copyright © 2008 GE Commercial Finance. All rights reserved. “GE,” “General Electric Company,” “General Electric,” the GE Logo, and various other marks and logos used in this publication are registered trademarks, trade names and service marks of General Electric Company. You may reprint or forward this newsletter to others provided that it is reproduced or distributed in its entirety, including this disclaimer. For all other uses please contact Jeffrey Wilson. This publication provides general information and should not be used or taken as business, financial, tax, accounting, legal or other advice, or relied upon in substitution for the exercise of your independent judgment. For your specific situation or where otherwise required, expert advice should be sought. The views expressed in these articles reflect those of the authors and contributors and not necessarily the views of GE Corporate Lending or any of its affiliates (together, “GE”). Although GE believes that the information contained in this publication has been obtained from and is based upon sources GE believes to be reliable, GE does not guarantee its accuracy and it may be incomplete or condensed. GE makes no representation or warranties of any kind whatsoever in respect of such information. GE accepts no liability of any kind for loss arising from the use of the material presented in this publication.