Notable (Loan Defaults, Oncor, Staples, Takata Corp)

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Loan Deficiencies. Some interesting numbers here.

Oncor. Warren Buffett to the rescue? Perhaps, perhaps not. It seems there may be competition for the asset. It looks like Kirkland & Ellis LLP and Gibson Dunn & Crutcher LLP stand to make good fees on the transaction if it goes through.

Staples. Details on Sycamore Partners' proposed LBO financing here.

Takata Corp. More professionals with a seat at the table.

Notable (Div Recaps, Golf, Molycorp, Sycamore Partners, WeWork)

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Dividend Recaps. Apparently they are not an exclusively American phenomenon. 

Golf. The best one of us shot a 125 last week so take what we're about to say with a (bitter) grain of salt: golf is pretty lame. Okay, fine, we'll backtrack and admit: we're getting into it but we definitely can see why millennials aren't biting, why Golfsmith filed for bankruptcy and why Nike straight-up cancelled its golf line. Still, a lot of lawyers, bankers, investors, (douchebags,) and advisors play. Perhaps that has something to do with the fact that golf is, in the words of Malcolm Gladwell, "crack cocaine for rich white guys." Read: a lot of you. Which is why we're bothering to mention it. Anyway, speaking of Gladwell, the new season of his solid podcast is up and you can listen to his first episode on the subject of golf here. It's worth the time - especially if you live in Los Angeles. 

Molycorp. Lots of fighting going on over the rare metals miner.

Sycamore Partners. The private equity shop is reportedly nearing a deal for Staples ($SPLS) for a reported $6b. 

WeWork. What happens to the upstart when the cycle turns? We reckon a lot of 363 lease rejections motions, that's what. 

News for the Week of 3/12/17

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  • Commercial Real Estate Backed Loans. Looks like J.C. Penney store closures could impair $30b of loans.
  • European Elections & CDS. Investors perceive greater redenomination risk in France and Germany.
  • European Retail. It seems the bloody retail phenomenon isn't exclusive to US retailers. Jack Wolfskin, a German producer of outdoor wear and equipment, is in the midst of a restructuring of its $365mm of debt. The Blackstone Group is the company's sponsor and PJT Partners is shopping the company. Meanwhile, Jaeger, a UK-based clothier is also on the block, with an administration within the bounds of possibility. AlixPartners is advising the company.
  • High Yield. Valeant Pharmaceuticals, Foresight Energy and Community Health Systems all issued new high yield debt this past week and what screams of a massive yield grab. No, we're not joking: this actually happened. And demand was so strong that upsizing took place. We repeat: "demand was so strong that upsizing took place."
  • Oil & Gas Fallout. Like we said last week, we're crushing Ramen so it's hard to feel sorry for a man pulling in $2mm and a $50k/month consulting fee, but its interesting to see some of the effects of the energy downturn - here, relating to Energy XXI's former CEO. 
  • Power. The Westinghouse saga got juicier with Weil and the Japanese Prime Minister basically saying put up or shut up. Meanwhile, FirstEnergy is involved in shenanigans and Exelon is now getting active. 
  • Private Equity History Lesson. A review of J.Crew's take-private transaction and private equity's affinity for dividends, long-term viability be-damned. 
  • Puerto Rico. Sh*t is getting real and people are starting to clamor for bankruptcy.
  • Television. Netflix is going after unscripted reality TV. Choice quote: "The competition should be scared out of their minds. These guys are monsters — they're coming in to play and play hard."
  • Uber. Expansion in India seems to be predicated upon a mountain of driver debt.
  • Rewind I: Five weeks ago we reported the following: "The Finish Line Inc. announced its sale of Jack Rabbit Sports this week (66 locations) for undisclosed terms. "Undisclosed terms" = GU gels and a jock-strap." Apparently, we were too generous with our characterization of the financial consideration. Something tells us this won't stop Peter J. Soloman from dutifully and opportunistically noting the tombstone on its pitch materials for the next big retail mandate.  See, also, this.
  • Rewind II: Looks like Avaya Inc. has a potential buyer in publicly-traded Extreme Networks Inc. for its networking business (for $100mm).
  • Rewind III: Store closures. Add Staples to the list (70 locations) and Signet Jewelers (165 stores). And here is one report on the failure of BCBG.
  • Chart of the Week: 
  • Chart of the Week II: