Monday, December 8, 2008

Carlyle Group Scrubs IMO's Balance Sheet

The Carlyle Group purchased IMO Car Wash last year for 450 million pounds, borrowing 350 million from banks. Hemscott reported Carlyle hired NM Rothschild to help restructure the debt. IMO has 300 Arc Clean Car Centers in Britain.

How does a private equity underwriter (PEU) gain leverage on banks holding their corporate debt? Would owning credit default swaps on IMO help Carlyle negotiate? How do the SemGroup, Carlyle Capital Corporation, Blue Wave Partners, and Hawaiian Telecom bankruptcies factor into the bank's decision?

Carlyle has $14 billion ready to buy distressed debt. How much PEU affiliate debt will they buy on the cheap? Stay tuned.