Special paydays threaten equity investments

Risk staff
01 Sep 2006

Tweet
Facebook
LinkedIn
Save this article
Send to
Print this page

Private equity firms could be threatening the long-term credit quality of their investments by using cheap debt to boost one-off dividends payments. In a report last month by Standard & Poor's (S&P), credit analysts warn that the danger from "special paydays" appears real, although no loans connected with such deals have defaulted so far.

There has been a sharp rise in dividend recapitalisations over the past three years, with some $35 billion of refinancing linked to loans in 2005, compared with

Only users who have a paid subscription or are part of a corporate subscription are able to print or copy content.

To access these options, along with all other subscription benefits, please contact [email protected] or view our subscription options here: http://subscriptions.risk.net/subscribe

You are currently unable to print this content. Please contact [email protected] to find out more.

You are currently unable to copy this content. Please contact [email protected] to find out more.

You may share this content using our article tools. Printing this content is for the sole use of the Authorised User (named subscriber), as outlined in our terms and conditions - https://www.infopro-insight.com/terms-conditions/insight-subscriptions/

If you would like to purchase additional rights please email [email protected]

You may share this content using our article tools. Copying this content is for the sole use of the Authorised User (named subscriber), as outlined in our terms and conditions - https://www.infopro-insight.com/terms-conditions/insight-subscriptions/

If you would like to purchase additional rights please email [email protected]