Categories: OLD Media Moves

Daily News: Bloomberg considering leveraged recapitalization

Although Bloomberg L.P. majority owner Mike Bloomberg has decided not to sell the company, he apparently is seeking a recapitalization of the company, said a story in the New York Daily News quoting a CNBC reporter.

Greg Wilson wrote, “A leveraged recap is a transaction in which a business takes on debt or uses equity to generate cash for shareholders. In the case of Bloomberg LP, the deal would fund a dividend to shareholders of the company that the mayor founded in 1981.

“The deal could bring Bloomberg $7 billion while allowing him to keep a 70% ownership stake in the company, David Faber reported on the cable network’s ‘Street Signs.’

“Financial powerhouse Merrill Lynch is the company’s other main shareholder.

“Private equity groups usually need to see a strong balance sheet, good management and positive prospects for the future before providing the infusion of cash, which would be no problem for Bloomberg. Faber said reports placing the company’s value at $12 billion are way off, and he cited sources putting the value at double that estimate.â€?

Read more here.

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