Comments on: Hilton’s LBO unwinds http://blogs.reuters.com/felix-salmon/2009/09/16/hiltons-lbo-unwinds/ A slice of lime in the soda Sun, 26 Oct 2014 19:05:02 +0000 hourly 1 http://wordpress.org/?v=4.2.5 By: Brad Ford http://blogs.reuters.com/felix-salmon/2009/09/16/hiltons-lbo-unwinds/comment-page-1/#comment-6892 Thu, 17 Sep 2009 14:15:23 +0000 http://blogs.reuters.com/felix-salmon/2009/09/16/hiltons-lbo-unwinds/#comment-6892 The restructuring is quite logical.

Example: (I made up the dollar amounts and haircut percentage)
1. Convert $100m in loans into $80m in bonds;
2. The government takes a 20% haircut;
3. The new lenders take less risk;
4. Despite having their equity wiped out in the original deal, the “owners” end up with new equity and keep the properties.

Everyone wins – except Uncle Sam.

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By: Duff Samoa http://blogs.reuters.com/felix-salmon/2009/09/16/hiltons-lbo-unwinds/comment-page-1/#comment-6876 Thu, 17 Sep 2009 03:11:49 +0000 http://blogs.reuters.com/felix-salmon/2009/09/16/hiltons-lbo-unwinds/#comment-6876 Reminds me of the anecdote from this article:
http://www.thedeal.com/newsweekly/2009/s ept-14-2009/nice-work-if-you-can-get-it. php

Deal was crazy, yes, but crazy good also…

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