Thursday, December 20, 2007

China - Car review, Car component, car and girl


Automobiles, Car Pictures, Car review, Car component, car and girl

``Those that assert that this is merely an isolated subprime crisis should observe very closely the price and terms that lenders are willing to accept with Chrysler finance this week,'' said Bill Gross, a bond fund manager for Pimco, in a note to clients Tuesday. ``That more than anything may wake them, shake them, and tell them that their world has suddenly changed.''

However, that doesn't mean Cerberus will not be able to raise the money or complete the deal. Depending on how their agreement is structured, the private-equity firm might end up having to pay higher interest rates than originally envisioned _ tacking on millions of dollars to the deal.

``Our financing is fully committed, and we are confident the deal will close on schedule,'' said Peter Duda, a spokesman for Cerberus, who would not discuss specific terms of the buyout shop's agreement with investment banks.

The deal also could be structured so that the investment banks underwriting the offering might be held responsible for paying the higher interest. In many cases, these banks hold on to the debt and sell it later when market conditions improve.

Leading the financing besides TD Bank and RBC, is JPMorgan Chase & Co., Goldman Sachs Group Inc., Citigroup Inc., Morgan Stanley and Bear Stearns Cos. Spokesmen for all of those institutions either did not return telephone calls or would not comment on the debt sale.

Trouble selling the deal to institutional investors highlights the risk to private-equity firms that count on high-yield loans and bonds to put together deals.

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