High Finance
To be clear, Buffett is the largest economic shareholder in Paramount but Shari still controls nearly 80 percent of the voting stock
Are You There, Aryeh? It’s Me, Shari…
Diego Segura added 1y
Shari only owns 10% of the company, and that 10% first-class stock has 80% of the voting shares, which is wild. Back in the L*s M**nves days, they tried a “nuclear option” with Marty Lipton to provide a dividend to the second-class shares that didn't give money but instead granted votes, which would have the Redstone shares powerless. It never went through.
Notes on **Higher for much longer**, *Grant's Interest Rate Observer*, Vol. 41 No. 14
- learned who Louise Yamada is, apparently someone who Grant's gives the credit of being an adept market timer
- Grant's wrote an article on June 4 2004, **Bonds: The next generation** that made the same prediction they make today: that the long bull market fo... See more
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[Tidewater] sold $250MM of senior unsecured bonds maturing in 2028 with a 10 3/8% coupon at a price of 99.
- they now trade at 102 to yield 9.8%, a spread of 522 basis points over Treasurys, or 124 basis points wider than the average single-B spread.
- implies they are “deep junk” bonds
Diego Segura added 1y
One person recently likened LVMH to me as a private equity firm with 40 percent carry rather than 20 percent carry. Not a bad deal.
September Issues
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It’s hard to exaggerate the importance of the Permian, which accounted for 74% of incremental oil production worldwide between 2015 and 2022. If that gusher is subsiding, the world will need to find new sources of oil, including offshore.
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The average leveraged loan had a debt-to-Ebitda ratio of 6x at year-end 2021, and this calculation was often based on aggressive Ebitda adjustments, meaning true leverage was often greater.
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"The Fed's own data," observes the August 29 edition of "Early Morning with Dave" (David A. Rosenberg, of course), "show that bank-wide credit card delinquency rates have gone from 1.84% a year ago to 2.43% in the first quarter of 2023 and now to 2.77% in the second quarter. This is also before we have even seen the onset of higher unemployment--is... See more
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“In the decade before 2022,” the Oaktree authors lead off, “many sponsor- backed companies financed leveraged buyouts by borrowing heavily in the broadly syndicated loan and private cred- it markets—and the majority of this debt had floating rates.” Naturally, the 500 basis-point jump in reference rates spells higher borrowing costs for the unhedge... See more
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Let’s assume for a moment, though, that between the two sales, Paramount walks away with $4.5 billion in cash. Paramount has $13.5 billion of net debt, as of March 31. If Bakish decided to use the $4.5 billion in cash from the sales of S&S and BET to pay down that debt—always a good use of cash—Paramount would still have $9 billion in debt. On ... See more
Are You There, Aryeh? It’s Me, Shari…
Diego Segura added 1y
it seems as though these are all brands that could be fucking incredible but are being manage-managed rather than brand-managed
“Getting a yield of less than 1% to lock up your money for up to 100 years might not sound like a great deal,” Bloomberg led its story about the com- ing of the Austria 0.85s, in June 2020, “yet the rush for safety means Austria’s century bonds [i.e., the 2.1s] have nearly doubled in value so far. That’s why the nation’s sale of new debt that matur... See more
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