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Plus Motley Fool personal finance expert Robert Brokamp and contributor Matt Frankel discuss what to do if your consumer debt is getting more expensive. 29, 2023 Ricky Mulvey: You love to see an all-time high, except when it involves credit card debt. Consumer debt is certainly higher than it was but not high by historical means.
We have two companies that are heavily indebted. They carry a lot of debt on their balance sheets. Warner Brothers has been moving toward paying down that heavy debt it carried since its demerger from AT&T. It had about $55 billion of debt or so. But as you mentioned, the debt on both sides is certainly significant.
My take: This is a great deal for BCI and Searchlight, a private equity firm BCI seeded. Consolidated Communications is a leading fiber-first provider and it will grow nicely as a privatecompany with BCI/ Searchlight as its partners. Institutional investors see privatedebt as an area of huge opportunity in the coming years.
So, until the financial crisis of 2007 and 2009 or however you go — you actually time it, I was in this finance bubble. They became able and obviously interested in living more and more and more in debt. So, in the dynamics of it, once you took debt, your preference has changed completely. Then you hate equity ….
Ministers and regulators are said to be concerned that Britain ’s biggest water supplier, which has 15 million customers in the capital and along the Thames Valley , may be unable to service its huge debt pile. Last year, the company received a £500m cash injection from shareholders who had agreed a further £1bn in principle.
JOHNSON: Yeah, and then we took on some debt. If you’re a privatecompany, you don’t have any of those pressures. We actually acquired in 2007 a local asset management. RITHOLTZ: So let’s talk about some of those more recent acquisitions. 2020, you buy Legg Mason. I think it was an all-cash deal, $4.5
But there’s also a lot of, like at Wittel, you know, I was at Wachtel in 2005 to 2007, so really near the peak of a big merger’s boom. We have all this debt and then they just refinanced their debt and like, and you know, bought a lot of it down because they could sell stock at very high prices. And I love that.
That thesis was that zero interest rate policy for 15 years and quantitative easing led to an excess amount of debt build up. As that debt build up comes due in a new higher interest rate environment, people have to pay down the amount of debt they have. There's a lot more debt in the system than might be apparent.
So we created basically a mid-market lending platform that ultimately spun out some of the most talented and capable folks, you know, within the privatedebt world today. But we not only did the financing for deals, we actually invested alongside those private equity firms — RITHOLTZ: Oh, really? KENCEL: That’s right.
Even amid tariff uncertainty clouding the near-term picture, several privatecompanies are now on track to go public. Eventually, StubHub sold itself to eBay in January 2007 for $310 million. Alternatively, another positive element is that the company intends to use the IPO proceeds to pay down at least part of its $2.39
That was sort of unfathomable at the time, that someone could buy a giant, publicly traded company strictly with low-cost debt. Well, first of all, the big fee that really ends up, and this is not a fee to the private equity firm, but the big problem with many of these deals is the debt interest costs, okay?
So I had started a third company called Room 77 that we had end up selling to Google. I had just gotten married in the fall of 2007. Or are you looking at startups or privatecompanies that have been for around for a while that are potential disruptors? I had my first child in June of 2008.
Total enterprise value of the agreement, which includes debt on the Innergex balance sheet, is $10-billion. Mr. Letellier and Innergex chief financial officer Jean Trudel are also rolling over a portion of their shares and reinvesting a minimum of $15-million in the privatizedcompany, according to details of the transaction.
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