Any DCM, LevFin, PE guys/girls out there?

elan — Tue, 23 Sep 2008 11:12:47 -0400

I've been trying to price a financing commitment which has already been. I have several pieces of debt including a Term loan, Sr. Secured, Sr. Secured 2nd lien, Sr. Secured 2nd Lien PIK, and Sr. Unsecured. For the non-bank debt I got comp debt from CapIQ and BB. The Term Loan I don't have a reference point for, its structured LIBOR+Spread and none of the Term Loans from BB are priced. Any idea how I can price this?

The issue I'm having is, none of my yields make any sense, I have higher yields for my Sr Secured, and lower yields for my 2nd Lien and unsecured. None of my subject debt is rated, so I did a crude method for narrowing down my comps, which is taking debt rated BBB- and below since the merged entity will be highly-leveraged and each pre-merger entity doesn't have any debt rated above BBB.

Its definitely possible, I'm just not sure how to approach it to get some reasonable results. I saw an analysis done by another firm and I'm trying to come up with my own MTM.

Comp debt question

elan — Sun, 14 Sep 2008 15:37:23 -0400

I'm trying to mark an M&A financing commitment to market. So I went into Cap IQ and pulled fixed income stats on comparable issuances (issuing co has similar Leverage/EBITDA mult, industry, debt maturity, etc…). Now I have a bunch of stat from Cap IQ and I'm trying to figure out how I mark-to-market. Is it just:

Gain(Loss) = -([100] - [Market Price]) * [Total Issuance Amount]

That seems too easy, am I missing something?

Quick (stupid) DCF question

elan — Thu, 21 Aug 2008 21:53:01 -0400

Stub period is Q4 '08.

So my discount periods are as follows:

(half of .25) Period1+6mos Period2+1yr Period3+1yr
.13 .63 1.63 2.63 and so on...

My period is 4.63.... My terminal value is 5, correct?

Free Cash Flow without working capital

elan — Wed, 06 Aug 2008 19:54:39 -0400

I'm calculating FCF per segment... only issue is that current assets and current liabilities aren't stated per segment.... I do have total assets per segment though...

If I calculate change in WC for the entire company, and use each segment's assets to weight the change in working capital per segment... does that make any sense?

How could I calculate FCF per segment otherwise? What I have is:
Revenue per segment, EBITDA per segment, Assets per segement, D&A per segment, CapEx per segment... and obviously all figures as an aggregate for the whole firm. No relevant segment specific details in MD&A or footnotes.

How to deal with this VP

elan — Wed, 06 Aug 2008 12:23:37 -0400

I started at a boutique restructuring shop a couple of weeks, I got staffed on 2 live deals my first day, and have been working 14-16 hour days including Sat and Sun. BUT... one of the VPs I'm working on one of the deals with, keeps giving me his leg work to do. Its not even necessary half the time, he just wants it for his own understanding. So I have a ton of crap to do thats not even necessary half the time, and its killing the other stuff I need to get done for the deal, half the time it ends up getting forked over to one of the associates because "Im busy working on XYZ."

I know he means well, a couple of the MDs make comments about how he said Im doing some really great work. I even corrected a pretty critical mistake in one of his models and the MD knew about that too, so he must have told him. But it sucks because I dont get to do as much of the good/important work.

CapIQ

elan — Sat, 02 Aug 2008 10:37:02 -0400

The numbers I'm getting out of CapIQ are bogus. When I plug the income statement figures into my model, all the net incomes/EBITDA are off the mark. All the CapIQ Net Income figures are hard coded in, if you actually have formulas calculating NI off of CapIQ rev, COGS, SGA, interest exp, etc.. , its almost always off.

How do you guys work around this? The NI figure shown by CapIQ is the actual net income, but the supporting numbers they provide dont bring you to that NI.

WTF.

Bloomberg... a little help please

elan — Wed, 30 Jul 2008 16:52:57 -0400

I need to pull historic yields for a bunch of different indices... Ive been on bloomberg for the last 45 minutes with no luck. Specifically, Im trying to get 5yr, 10yr, 20yr, and 30yr for each of the following:

Munis:
AAA GO
AA GO
A GO
BAA GO
and Insured

I can get the current yields but I don't know how to get all yields from April '08 to July 30 '08.

A little help please.

Monolines

elan — Thu, 24 Jul 2008 10:47:58 -0400

Can anyone offer some insight on the monolines. I know its a pretty arcane industry, are there any unique TVE drivers or multiples used in valuing these firms? How do statutory accounting standards vary from GAAP form a valuation standpoint?

Long Island City

elan — Mon, 14 Jul 2008 13:27:49 -0400

Does anyone live in LIC, or has anyone lived there in the past?

I'm currently looking to move to LIC so I have a much shorter commute and I don't want to spend a whole lot on rent. I LIC is about a 10 minute subway ride to Grand Central... what are some other things to consider?

Someone told me there are parts of LIC which are really ghetto... should I focus on certain areas?

Any suggestions would be appreciated or alternatives. I'm hoping to spend between 800-1000 a month for a share. Been looking on CL so far and found some good places, but they go off the mkt sooo fast its ridiculous. I'd be willing to spend upto 1200/month if its a really nice apt/building etc...

Two Bear Fund Managers Get Screwed

elan — Thu, 19 Jun 2008 15:27:25 -0400

What do you guys think of this? I think its a pile of horse sh*t personally. Its a bunch of politicians and government regulators scrambling to exhibit some semblances of competence. I really don't believe these guys misled anyone, last time I checked it wasn't illegal to have an ego(within reason), IMO they thought they could regain control and avoid catastrophe.

The government is a joke. They are consistently dropping the ball and scrambling to earn their keep by finding a scapegoat.

http://www.nytimes.com/2008/06/20/business/20bear.html?ref=business