Word: lbo
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Dates: during 1990-1999
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...ways to restructure their debt, notably by using corporate stock. Firms in relatively good financial health can raise money by offering new shares on the market. Mr. Coffee, which was leveraged to the hilt as the result of a 1987 buyout, was able to wipe out almost half its LBO debt through a new issue last May. Another technique is the debt-for-equity swap, in which corporations retire their bonds by giving lenders corporate stock. That strategy was employed by furniture maker Interco, which last week announced that it will swap 95% of the stock in the company...
...devoted reader of true crime stories and a demon for detail, Burrough weaves suspense into his tales of high finance and intrigue. "I try to write somewhat the way a good murder mystery is written," he explains. "My stories sometimes read as if ((LBO king)) Henry Kravis were approaching with an ax instead of a buyout offer." Burrough may have hit the peak of fascination with 1980s whodunits. As the 1990s wear on, his agent Andrew Wylie says with literary disdain, readers are likely to become more interested in advice books on "how to stave off disaster...
...real estate agent in Berkeley, complained that he had lost money in the junk-bond debacle and called Milken's fine a travesty. Ronald Cornwall, a Pennsauken, N.J., grocery clerk, said his salary plunged from $33,000 to $24,700 when his employer, Pathmark, was acquired in an LBO...
...same problem has staggered Southland and Circle K, the two largest U.S. operators of convenience stores. Southland, which runs 7-Eleven outlets (total stores: 6,900), ran into trouble after borrowing $4.9 billion for an LBO in 1987. The cash-strapped company is now negotiating to sell 75% of its stock for $400 million to Japanese investors. Circle K, with 4,600 stores in 32 states, sought protection under Chapter 11 last month after accumulating $1.2 billion of debt during a six-year expansion binge...
Even the venerable R.H. Macy is living uncomfortably close to the edge. The Manhattan-based retailer said last week it was "actively examining opportunities to reduce or refinance our debt." Macy's has been reeling from interest charges on $3.7 billion that it borrowed in 1986 for an LBO. The company's woes worsened last Christmas, when it tried to match desperate markdowns at the bankrupt-bound Allied and Federated department store groups -- the properties of debt-driven Canadian raider Robert Campeau. The problems of retailers were underscored last week when Ames Department Stores, which entered bankruptcy in April...