Filed under: Bargains, Extracurriculars, Ripoffs and Scams, Shopping, Transportation

When I was a kid, my buddy Sean had a large collection of 1970’s-era MAD magazines. I remember flipping through them, laughing at the Star Wars and Jaws jokes, and being totally puzzled by the gas crisis humor. After all, this was the mid-1980’s. Gas was cheap, vehicles were efficient (relative to the 1970’s, at least), and the idea of siphoning gas was bizarre. For the life of me, I couldn’t comprehend why someone would want to spend good money on a locking gas cap, much less suck fuel through a tube.

Flash-forward twenty years or so, and I’m starting to comprehend all the jokes. Recently, my wife and I calculated that, given current gas prices, it would cost us over $80 to fill up the Jeep Liberty that we used to own. With that in mind, it’s hardly surprising that there’s been a rash of gas thefts. Earlier this month, the New York Police department ordered 400 locking gas caps, as there’s been a high rate of gas siphoning. According to a recent report , a Lambertville, Michigan Sheriff’s deputy was staking out a neighborhood to protect against an arsonist when the suspect actually tried to siphon gas from the deputy’s cruiser!

Want to see how simple it is? Check out Tom Barlow’s earlier post. In fact, as Josh Smith recently pointed out, some thieves are even stealing waste vegetable oil, as it is capable of powering diesel engines!

All of this rampant gas theft has fueled something else: locking gas caps, which used to be nearly a historical curiosity, are back in style. Stant, Inc., America’s largest manufacturer of locking gas caps, has seen demand go through the roof, as has Amazon.com and numerous retailers. This is hardly surprising; at $15-20 a pop, locking gas caps are an economical way to protect what might be the most valuable thing in your automobile!

Bruce Watson is a freelance writer, blogger, and all-around cheapskate. He protects his gasoline by leaving it with all the other gasoline at the gas station.

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Filed under: Rumors, Private equity industry, Value and lack thereof

24/7 WallSt.com has come up with a list of 11 targets that could fall under foreign ownership. These deals should become easier and easier for foreign entities or sovereign wealth funds if the extreme weakness in the dollar continues. However, the dollar’s slide may be disturbed, as our interest rate futures are calling for more than a 100-basis point rise.

Our country and our companies have increasingly become targets for foreigners buying assets on the cheap. The trick is determining which ones have no impact on US national security so that the Committee on Foreign Investment in the United Says and other watchdogs don’t file to block the merger.

Major U.S. companies failed to move aggressively after the Asian Contagion in 1998, which was their last chance to buy foreign properties at a discount. Now that The US Dollar has become the US Peso, it seems that the U.S. could see many US-based companies become foreign acquisition targets.

This may be the post-American cycle taking effect or the flattening out of the world. Whatever it ends up being, it isn’t going to be without controversy and without change. You can read the full story from 247WallSt.com to see the list of eleven possible deals of public US companies as well as a list of eleven other current US brands that are now foreign-owned.

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Filed under: Raising money, Private equity industry

Prospect Capital Corporation (NASDAQ: PSEC) has announced it will raise funds in a public offering of three million shares of common stock, and Prospect will allow the underwriters a 30-day option to buy up to an additional 450,000 shares of its common stock to cover over-allotments from underwriters.

The private equity and mezzanine finance company stated that it expects to use the net proceeds from this secondary offering to repay outstanding debt, to fund investments in portfolio companies, and for general corporate purposes.

Citi and Wachovia are the lead underwriters, and Oppenheimer, and RBC Capital Markets are listed the co-managers of this offering.

Continue reading at 247WallSt.com to hear about the implications and how this compares to the overall size of the company.

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Filed under: Deals, Movers and shakers, The Blackstone Group, Rumors, Apollo Management, Private equity industry, Public or private?

Shares of Chemtura Corporation (NYSE: CEM) are seeing some love early Tuesday. A report out of the WSJ from last night is putting the stock in play as a potential takeover target. The report notes that Blackstone Group LP (NYSE: BX) and Apollo Management LP are in speaks to acquire the specialty chemical maker.

The company’s market cap is nearly $1.9 billion, so it would seem within the realm of deal sizes even in an environment where private equity types have not been able to do many deals. Whether or not the deal is made, that’s yet to be seen.

Chemtura products are used in flame retardants, polymer additives, PVC additives, agriculture, plastics, and more.

Even on a deal this size, do we need club deals in a private equity environment in need of simplification? Either way, until we’ve an announcement. this should be treated as just a rumor.

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Filed under: Deals, The Blackstone Group, Private equity industry

Yesterday was a tough day in the markets, with the Dow falling 199 points. But if you follow some of the legends of finance - such as Carl Icahn, T. Boone Pickens and The Blackstone Group’s (NYSE: BX) Steven Schwarzman - you will notice that they’re getting aggressive.

Keep in mind that these guys have been through multiple market cycles. And if history is any worthy benchmark, it’s during times of instability where the huge money is made.

Pickens is focusing on the energy industry. He sees major demand/supply imbalances and is buying various stocks. He’s also interested in natural gas and alternative fuels.

As for Icahn, he’s doing what he does best - shareholder activism. He senses when companies are vulnerable and seems to relish an attack on corporate managements and boards. Of course, he’s gearing up for a fight with Yahoo! (NASDAQ: YHOO). Interestingly enough, he persuaded Pickens to buy 10 million shares.

And with Schwarzman, he’s buying up the bank debt of companies that went private. Because Blackstone sees many deals, it has an extensive database of opportunities.

In other words, the legends of finance are confident in the long-term. They’re making some big bets — based on lots of experience and due diligence — and not listening to the short-term noise. All in all, these are some valuable lessons for investors.

Tom Taulli is the author of various books, including The Complete M&A Handbook and The Edgar Online Guide to Decoding Financial Statements. He also operates MergerBook.com.

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Filed under: The Blackstone Group, The Carlyle Group, Private equity industry

About a year ago, the rage in private equity was the so-called megabuyout. It seemed like no company was immune. There was even speak of $100 billion dollar deals.

Of course, the credit crunch ended the megabuyout. In fact, it ended most of the activity for private equity folks.

Yet, according to the co-founder of the Carlyle Group, David Rubenstein, things are perking up [subscription required]. His firm - like other veterans, such as The Blackstone Group (NYSE: BX) - comprehends market cycles. After all, these players have dealt with variety of credit crunches, such as in 1991-1992, 1998 and 2001-2002.

Rubenstein predicts we’ll see a pick-up in deals over the next few months. Even though, the deals are apt to range from $2 billion to $4 billion, with less debt. And expect more foreign deals.

Funny enough, Rubenstein seems to be leading the charge with its recently announced a $2.54 billion deal for a majority stake in Booz Allen Hamilton.

Tom Taulli is the author of various books, including The Complete M&A Handbook and The Edgar On the internet Guide to Decoding Financial Statements. He also operates MergerBook.com.

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Filed under: Raising money, Texas Pacific Group, Private equity industry, Investments, Value and lack thereof

A new capital raise may have set a record, or at least close to it. Tygris Commercial Finance Group, Inc. has launched a new commercial finance company for middle markets transactions, and it states in the launch release that its funding is over $1.75 billion in equity commitments. Tygris states this is the largest initial capital raise ever in the U.S. commercial finance sector. Tygris will initially have offices in Chicago, Stamford, CT and Parsippany, NJ.

Tygris was founded by Aquiline Capital Partners LLC (”Aquiline”), a New York based private equity firm specializing in financial services, with New Mountain Capital, L.L.C. and TPG Capital joining as lead investors.

The company also claims to have established significant relationships with financial institutions including Deutsche Bank, Credit Suisse, SunTrust Robinson Humphrey, Barclays, Wachovia and Wells Fargo Foothill. With the backers and management team here on this, this seems care about it is easily within the realm of contacts.

The Company initially will concentrate on developing leading franchise positions in three commercial finance businesses: middle market corporate finance, middle market equipment leasing and asset finance, and small ticket leasing.

Below is the management team, and unless I am missing something it looks like an impressive list of executives:

• Frederick E. “Rick” Wolfert, former Vice Chairman of Commercial Finance of the CIT Group and President of Heller Financial Inc., is the Company’s CEO.
• Steven F. Kluger, EVP, Capital Markets and Corporate Strategy; former President/CEO of GE Capital Markets.
• Stuart A. Armstrong, President of Corporate Finance; former President/CEO of Black Diamond Commercial Finance, former Senior Managing Director and Head of Corporate Lending’s vertical industry financing groups at GE Commercial Finance.
• Laird M. Boulden, President of Asset Finance (Chicago); former President/CEO of RBS Asset Finance, and President/co-founder of the Commercial Equipment Finance Group for Heller Financial Inc.
• Tim J. Eichenlaub, EVP, Chief Risk Officer; former Senior Managing Director and Group Head for CIT’s Sponsor Finance business.
• T. Doug Hollowell, EVP, General Counsel and Head of Depository Strategy; former Executive Director at Morgan Stanley Corporate Treasury, and General Counsel at Merrill Lynch Capital.

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Filed under: The Blackstone Group, Private equity industry

The struggles of the massive boys in private equity have been well chronicled: Blackstone Group’s (NYSE: BX) declining stock price, the Linens n’ Things bankruptcy, and so on.

But NexCen Brands (NASDAQ: NEXC), a smaller, less diversified buyout shop, is also in trouble, according to The New York Times. The firm’s portfolio companies include Bill Blass, Athlete’s Foot and ice cream chain MaggieMoo’s. With other brands including Pretzel Time and Great American Cookies, the fast-growing company had planned to make millions in the franchising business. But in current months NexCen has fired its CFO, delayed the filing of its 10-Q, disclosed that there’s “substantial doubt” about its ability to continue as a going concern, and announced that investors should no longer rely upon its 2007 financials.

Basically, NexCen is looking like yet another failed conglomerate, at least for now. Rather than buying, improving, and selling businesses like many private equity firms, NexCen had hoped to acquire various franchise brands and run them under a more massive umbrella, taking advantage of synergies and opportunities for integration. Yes, that’s the dreaded S-word. I wonder how many billions of dollars in shareholder value have been destroyed by promises of synergy.

With the company badly in need of cash, it’s currently looking to sell some or all of its brands. But in this market, that might not be so easy. Athlete’s Foot and Pretzel Time sure didn’t create a lot of value for NexCen shareholders.

More bad news for Blackstone:

• Both GAAP and “economic net losses” in the latest financial results from Blackstone

• Lawsuits filed against Blackstone on behalf of shareholders

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Filed under: Raising money, Apollo Management, Private equity industry, Public or private?

Metals USA Holdings Corp. filed to come public this morning via an initial public offering. The company is taking the proposed ticker of “MUX” on NYSE. For filing purposes, it intends to sell up to $200 million in common stock.

The company is one of the largest metal service center businesses in the United States, and is a leading provider of value-added processed carbon steel, stainless steel, aluminum, red metals and manufactured metal components.

This is a private equity held company, and investment funds affiliated with Apollo Management, L.P. are the principal stockholders. Some proceeds will go to the company and some to shareholders, although those percentages have not been set. It also looks like the company will repurchase some or all of $300 million of senior floating rate notes with the proceeds.

Read the full story from 247WallSt.com.

Jon Ogg produces and edits the “10 Stocks Under $10″ newsletter and he does not own securities in the companies he covers.

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Filed under: The Blackstone Group, Financials and analyticals, Private equity industry, Shareholders

The Blackstone Group L.P. (NYSE: BX) has reported earnings this morning, and the initial response is lower. The private equity giant posted a GAAP net loss of $246.7 million after items, and its “economic net income” was also a loss at -$93.6 million.

The company stated that its total net reportable segment revenues were $32.3 million, driven down by declines in all business segments from $1.23 billion in 2007. Its GAAP revenues were $68.5 million.

Corporate Private Equity had negative first quarter revenues; Real Estate revenues down 94%; Marketable Alternative Asset Management down 81%; Financial Advisory Revenues decreased 24%

You can look through the entire release, but as the company noted, most business segments were indeed lower.

Interestingly enough, the company now has $113.53 billion in assets under management. It has also decided to make a dividend payment of $0.30.

Shares of Blackstone are down about 4% at $18.70 in pre-market trading.

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