Thursday, May 19, 2016

Carlyle Sells Connecticut Rest Stops

The Carlyle Group will exit its interstate rest area investment with the state of Connecticut by selling its stake in Project Service LLC to a European infrastructure fund for $105 million.  Carlyle refurbished 20 rest stops in Interstate 95, 396 and the Merritt Parkway under a deal struck in 2009.  At the time officials overlooked prior bad behavior by Carlyle in their state.

The lease term was 35 years. Carlyle will take their profits and run after 7 years, one fifth of their initial commitment.  It's not clear how much Carlyle pulled out of Project Service via management fees, dividends and special distributions.  Did they pull a liquidity recap, known as debt for dividend, during their ownership.  The PEU boys have numerous ways to profit from financial jiggering, but they're best at milking the public.