"It turns out that the lion spoke loudly!"

Arthur frowned and said with a sneer, then reached out to signal his subordinate to sit down.

After sitting down, the person in charge of the team negotiations said helplessly: "Everyone expected, but I didn't expect that their appetite was so big. Behind their confidence, there was a smart calculation. They had already recovered the equity investment and could make another profit by borrowing Amc listing.

Moreover, in the fiscal year 2009, although the economic crisis was raging, Amc's performance was very good, achieving a net profit of US$79.91 million that year. Private equity fund shareholders were full of confidence. They believed that the financial report performance in 2010 would be more eye-catching, and IPO should also be natural.

These factors add up to give them confidence, but they also expressed enough welcome attitude towards our appearance, so that everything can be sat down and talked about... In fact, they also know that if the IPO is not successful, it is not easy to find a good buyer. This buyer must not only have enough money, but also have enough business level. Only in this way can repayment be safer.

Therefore, in their eyes, boss, you are one of the good buyers. Of course, if the amc can be listed, it will be better for them. After all, the stock market returns are much higher than the bond market. Their abacus is that if the amc can be listed, it will be sold. If the upper market is not successful, it will be sold. If it is not successful, it will be better.

However, the key is the bond issue. The amc theater chain has been overdrawn and cashed out by these guys in the next few years. "The negotiation leader took out a file bag from his bag, opened it, pulled out a stack of documents from it, handed it to Arthur, and shook his head helplessly and said.

"Bond..." Arthur muttered, took the documents and looked at them, frowned and complained: "What a bunch of bastards!"

If it is in a casino, then the estimation and control of risks are the key to ensuring that you have the capital to continue to bet. Similar to casinos, bonds also face the same problem. This is a game where there is no mistake and one of the biggest problems that Arthur needs to face in the amc merger and acquisition transaction.

Because bond investors need higher interest rates and more absolutely safe repayments. These bond investors are also familiar with the five major private equity fund shareholders of Amc and earn every penny together.

If Arthur wants to acquire Amc, he must face these bond investors directly and find ways to convince them that he can reorganize these short-term or near-maturity debts and extend the repayment date.

It is conceivable how difficult it would be to convince these people. This involves a change of control of the bond and is a major default clause in the bond. The confidence of the creditor becomes the key.

And formally taking over Amc. Strictly speaking, this is just a leveraged asset restructuring. After the restructuring, debt increases and equity structure reshuffle is a friendly and cooperative leveraged acquisition, not a malicious acquisition. Next, the test for Arthur's side is to directly compete with the Wall Street giants as the owner of Amc.

Here we cannot ignore the qiu rules of Wall Street's leveraged mergers and acquisitions. Mergers and acquisitions are the magic weapon for Wall Street to make profits, because whether it is success or failure, Wall Street can earn handling fees. Leveraged acquisition companies will charge management fees, investment banks will charge consulting fees, brokerage firms will charge high-yield bond issuance fees, etc.

Investment banks, private equity funds and securities firms, you and me, I have you, the relationship is complicated, and many of them have maintained decades of friendship. Therefore, Wall Street's mergers and acquisitions business can be seen as a game of endless play between a group of old friends.

Of course, these vampires are not in harmony, and there are fierce quarrels and interests. At that time, Arthur can also pull a group of people, fight a group of people, and then collapse from the inside. However, these are all later stories.

Now, what he has to face is whether he can accept it and tolerate the other party's fearless lion's blackmail price, gritting his teeth and acquiring the amc theater chain.

"Boss, amc's private equity fund shareholders are also facing two crises. One is that 2012 is the fund's exit period. The other is that there are huge maturing debts that need to be refinancing. No matter from any angle, the problems faced by amc's private equity fund shareholders are very difficult.

If they don’t want to take out the money to fill this hole by themselves, then either they can succeed or they can fill it out. Haha, it’s okay to let them put money in their pockets, but it’s basically impossible to get them out of money.

Since it is impossible to get money out, the only way out is to choose a good buyer to take over and get rid of these debts. A term loan with a total principal of US$476.6 million expired on January 26, 2013, and US$160 million of the bonds due in 2014 were not redeemed.”

Hearing his subordinates' reports, Arthur nodded. You should know that in leveraged acquisitions, private equity funds only use very little of their own funds, and the vast majority of funds come from debt financing, including the bond market and banks, as well as a small amount of mezzanine debt.

If this comes to the repayment period, it will definitely be the biggest problem that the acquired companies and acquirers need to face. If the capital chain is broken, it means that they are in a crash. There is only one way to apply for bankruptcy protection and carry out debt restructuring.

"Although it is shameless, the five major private equity companies hold the card of Amc listing and can calmly reorganize their debts." Arthur nodded and smiled, looked at his subordinates and continued: "When we acquire Amc, equity is not the focus, huge debts are the wall in front of us.

When acquiring Amc, its equity price and debt are a package of transactions. After the debt problem of Amc has been solved, the equity transaction price is much easier to talk about... Whether it is equity or debt, I only have two requirements. Before the acquisition of Amc, one is to try to pay off as little cash as possible, and hope that Amc's cash flows out as little as possible. The other is that private equity fund shareholders should repay Amc's short-term financing as much as possible, and at the same time have sufficient ability to cover forward financing."

"Well, that's true."

Arthur pondered for a while, stretched his frown and said to his negotiating person with a smile: "When will the negotiations officially start?"

“Tomorrow at 10 o’clock.”

"I will attend with you." Arthur made the decision.

"Okay, boss, but during the negotiation process, I hope you don't make any easy decisions on the spot..."

"Haha, don't worry, I just let them understand my attitude and will not interfere with your negotiations." Arthur didn't care about his own reminder of his own concern. He still had this measure.

The next morning, Arthur, who was wearing a high-end black suit, looked very tall and handsome, took his group of subordinates to meet the heads of Apollo Investment Fund, mg Chase Investment Fund, Bain Capital, Carlyle, and Spectral Investment Fund in the conference room of the Tiantang Holding Company, which was established by the five major holding private equity funds in the amc cinema chain.

The two sides first shook hands and greeted each other and introduced them, then they were placed on both sides of the conference table and sat clearly. Arthur sat in the position of the deputy, and the negotiation leader sat in the main seat. After all, Arthur was a layman in business negotiations, so he would not make trouble.

But when Arthur saw the appointed heads of the five major funds sitting in the middle, his eyes lit up. Sure enough, these five funds are not vegetarians, and no one is worried about their own interests being damaged, and no one believes in each other.

Everyone knows that one monk carries water to eat, while five monks don’t have water to eat.

The five persons in charge can speak, express their positions and attitudes, and make demands, but no one does not count. Tsk tsk, this is the most fatal thing.
Chapter completed!