Guns (Long Civil Division…and Professional Fees)

The Parkland situation is nothing short of heart-breaking: it has had us depressed all week. Looking for a positive, here, we’re as impressed by the composure of the Parkland students in the wake of that travesty as we are in the ability of parents to restrain themselves from tarring and feathering Marco Rubio during that CNN town hall. Were we in Westeros, homie would have gotten sh*t hurled at his face and his arms ripped out. Not that we’re advocating that. Just saying: it could’ve gotten ugly. The fact that we’re thrilled that this WASN’T the result just goes to show how low the bar is for civil discourse these days.

Other positives, Blackrock, the leader in the massive ETF space, is now saying that it wants to reach out to gun manufacturers “to understand their response” to the shootings. To quote Lester Freeman in the Wire, “follow the money.” Indexes, however, are complicated: Blackrock may be subject to index-oriented limitations that hinders its ability to take action against gun manufacturers. Still, any pressure is a positive development. Especially when coupled with the corporate response to the NRA.

All of which brings us back to Remington Outdoor Company. As we previously snarked in our mock First Day Declaration, well…f*ck them. Note that the lenders are putting $145mm of fresh capital into the thing. The term lenders will own the majority of the company and the third lien lenders will own the rest (plus warrants for upside…you know, in case more people die, regulators threaten to curb gun access, and 2nd Amendment fanatics need to run out and stock their 16-deep arsenal with another AR). Who are these lenders? According to Felix Salmon, they include Franklin Templeton and JPMorgan Asset Management. Marinate on that. Can’t imagine that all of the fine folks at Alvarez & Marsal and Milbank Tweed feel great about making fees on the mandate either…?