Sunday, March 29, 2020

Carlyle May Drop Pioneer Credit Deal, NY Plasma Study Approved

As the novel coronavirus shreds credit markets one private equity underwriter is rethinking an arranged deal. Pitchbook reported:

The Carlyle Group is considering pulling its proposed takeover of Australian financial services and debt management company Pioneer Credit, according to The Australian. The firm originally agreed to acquire the business in December for a reported A$120 million (about $71.5 million at today's conversion rate). Carlyle is believed to be asking for more data on the company's operations and performance.

Pioneer Credit Ltd provides financial services in Australia. The company's primary business involves in the acquisition and servicing of unsecured retail debt portfolios comprised of personal loans and credit card accounts. It is also involved in brokering, introducing, and issuing retail credit products.
The deal may be  doable at a lower price or it may die altogether.  Conversely, the global pandemic encouraged Carlyle to invest in blood products software firm MAK Systems.  New York approved a clinical study for blood plasma from recovered patients as treatment for seriously ill COVID-19 patients.

The Carlyle Group has an office in New York City and founder David Rubenstein's Declaration Partners also has a Madison Avenue address.  One is 510 and the other 520 Madison Avenue.

Update 4-7-20:  Chinese medical studies show the benefit of convalescent plasma on seriously ill coronavirus patients.

Update 4-13-20:  Pioneer Credit accused Carlyle of putting the screws to the company causing Pioneer's stock to drop over 50%.

Update 4-16-20:  Pioneer Credit talked with former suitors as its deal with Carlyle continues to sour.

Update 4-20-20:  Pioneer terminated its deal with Carlyle after The Carlyle Group called its $141 million loan.   Pioneer refused to become Mrs. Fields or Brintons'.