closing spigots

http://www.zerohedge.com/news/2016-02-25/rip-ma-boom-goldman-fails-get-2-billion-lbo-deal-done-even-double-digit-yields

pocket shuffling between private equity firms only get the attention of lp's when scarce liquidity hits quarterly reports and starts a redemption cycle.

thinking the lead time is mid april 

On Thursday, we got still more evidence that the market's appetite for junk is waning whenGoldman ran into trouble trying to get the financing done for the Vista/Solera deal. 

Solera - which is being sold to PE Vista Equity Partners - didn't have any trouble with a $1.9 billion leveraged loan offering last week (it was actually oversubscribed), but when Goldman tried to price $2 billion in bonds intended to help fund the LBO, things got dicey. Goldman was already figuring on pricing it at 10.75% -11% (which is obviously a rather punishing rate in the first place and was up from initial guidance of 10%) but by this morning, the bank had only managed to drum up about $1 billion in interest, causing pricing expectations to move above the expected range. 

"The difficulties are the latest sign that it is getting harder for heavily indebted companies to borrow," WSJ noted this afternoon. "Junk-rated firms have issued just $11.6 billion in bonds so far this year, down from $48.5 billion during the same period last year and the lowest total since 2009 during the depths of the financial crisis, according to Dealogic."

As The Journal goes on to note, this wasn't the first sign that things are starting to fall apart. "In recent weeks, LeasePlan International NV shelved a €1.55 billion ($1.71 billion) bond sale after failing to get enough investor interest. Banks were forced to fund Endurance International Group Holdings Inc.’s acquisition of email-marketing firm Constant Contact Inc. after failing to find buyers for $1.1 billion of buyout debt."