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Oct 5 (Reuters) – Elon Musk’s U-turn on shopping for Twitter Inc (TWTR.N) couldn’t have come at a worse time for the banks funding a big portion of the $44 billion deal and so they could possibly be going through vital losses.
As in any massive acquisition, banks would look to promote the debt to get it off their books. However traders have misplaced their urge for food for riskier debt reminiscent of leveraged loans, spooked by speedy rate of interest hikes around the globe, fears of recession and market volatility pushed by Russia’s invasion of Ukraine.
Whereas Musk will present a lot of $44 billion by promoting down his stake in electrical automobile maker Tesla Inc (TSLA.O) and by leaning on fairness financing from massive traders, main banks have dedicated to supply $12.5 billion.
They embody Morgan Stanley , Financial institution of America Corp and Barclays Plc (BARC.L).
Mitsubishi UFJ Monetary Group Inc (8306.T), BNP Paribas SA (BNPP.PA), Mizuho Monetary Group Inc (8411.T) and Societe Generale SA are additionally a part of the syndicate.
Noting different current high-profile losses for banks in leveraged financing, greater than 10 bankers and trade analysts instructed Reuters the outlook was poor for the banks making an attempt to promote the debt.
The Twitter debt bundle is comprised of $6.5 billion in leveraged loans, $3 billion in secured bonds, and one other $3 billion in unsecured bonds.
“From the banks’ perspective, that is lower than excellent,” stated Wedbush Securities analyst Dan Ives. “The banks have their backs to the wall – they don’t have any selection however to finance the deal.”
Leveraged financing sources have additionally beforehand instructed Reuters that potential losses for Wall Avenue banks concerned within the Twitter debt in such a market might run to tons of of thousands and thousands of {dollars}.
Societe Generale didn’t reply to a request for remark whereas the opposite banks declined to remark. Twitter additionally declined to remark. Musk didn’t instantly reply to a request for remark.
Simply final week, a bunch of lenders needed to cancel efforts to promote $3.9 billion of debt that financed Apollo World Administration Inc’s (APO.N) deal to purchase telecom and broadband property from Lumen Applied sciences Inc .
That got here on the heels of a bunch of banks having to take a $700 million loss on the sale of about $4.55 billion in debt backing the leveraged buyout of enterprise software program firm Citrix Programs Inc.
“The banks are on the hook for Twitter — they took an enormous loss on the Citrix deal a couple of weeks in the past and so they’re going through an excellent greater headache with this deal,” stated Chris Pultz, portfolio supervisor for merger arbitrage at Kellner Capital.
Banks have been pressured to tug again from leveraged financing within the wake of Citrix and different offers weighing on their stability sheet and that’s unlikely to vary anytime quickly.
The second quarter additionally noticed U.S. banks begin to take successful on their leveraged loans’ publicity because the outlook for dealmaking turned bitter. Banks will start reporting third-quarter earnings subsequent week.
Reporting by Anirban Sen, extra reporting by Megan Davies, Lananh Nguyen, Sheila Dang and Hyunjoo Jin; Writing by Paritosh Bansal; Modifying by Edwina Gibbs
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Aadhar Housing Finance IPO Allotment: The bidding for the initial public offering (IPO) of Aadhar Housing Finance has ended and the public issue received strong demand. The investors’ focus now shifts on Aadhar Housing Finance IPO allotment which is expected to be finalised on Monday.
Aadhar Housing Finance IPO opened for subscription on May 8 and closed on May 10. Aadhar Housing Finance IPO allotment date is May 13 and share listing date is May 15.
The company will finalise the basis of allotment on Monday and the investors can know if and how many shares they have been allotted.
Also Read: TBO Tek IPO allotment to be finalised on May 13. Latest GMP, steps to check status
Investors can check Aadhar Housing Finance IPO allotment status on the BSE website as well as on the official portal of IPO registrar. Kfin Technologies is the Aadhar Housing Finance IPO registrar.
Follow the below given steps to check Aadhar Housing Finance IPO allotment status online.
Step 1: Visit the BSE website on this link – https://www.bseindia.com/investors/appli_check.aspx
Step 2: Select ‘Equity’ under ‘Issue Type’
Step 3: Select ‘Aadhar Housing Finance Limited’ in the ‘Issue Name’ dropdown menu
Step 4: Either the Application number or PAN details
Step 5: Click ‘Search’
Your Aadhar Housing Finance IPO allotment status will appear on the screen.
Also Read: Mandeep Auto Industries IPO opens next week: From price band to key dates – all you need to know
Step 1: Visit Kfin Technologies website on this link – https://kosmic.kfintech.com/ipostatus/
Step 2: Select ‘Aadhar Housing Finance Limited’ in the Select IPO dropdown menu
Step 3: Select among the options given – Application No, Demat Account and PAN
Step 4: Enter the details as per the option selected
Step 5: Enter Captcha and click ‘Submit’
Your Aadhar Housing Finance IPO share allotment status will be displayed on the screen.
Aadhar Housing Finance IPO shares are trading at a decent premium in the grey market. Aadhar Housing Finance IPO GMP today is ₹71 per share, as per market observers. This indicates that Aadhar Housing Finance shares are trading at ₹386 apiece in the grey market, commanding a premium of 22.54% to the issue price of ₹315 per share.
Aadhar Housing Finance IPO has been subscribed 26.76 times in total as it received bids for 178.65 crore equity shares as against 6.67 crore shares on the offer, according to the NSE data.
The public issue has been subscribed 2.58 times in the retail category, 76.42 times in the Qualified Institutional Buyers (QIB) category, and 17.33 times in the Non-Institutional Investors (NII) category.
Read here: Aadhar Housing Finance IPO: Issue subscribed 25.49 times on day 3, QIB portion booked 72 times; Check GMP, other details
The bidding for Aadhar Housing Finance IPO commenced on May 8 and ended on May 10. The IPO allotment is likely to be fixed on Monday, May 13, and the Aadhar Housing Finance shares are set to be listed on both the bourses – BSE and NSE – on May 15.
The ₹3,000 crore worth Aadhar Housing Finance IPO was a combination of fresh issue of 3.17 crore equity shares aggregating to ₹1,000 crore and an offer for sale (OFS) component of 6.35 crore shares aggregating to ₹2,000 crore.
Aadhar Housing Finance IPO price band was set at ₹300 to ₹315 per share. Ahead of the IPO opening, the company had raised ₹897.90 crore from anchor investors on May 7.
ICICI Securities, Citigroup Global Markets India, Kotak Mahindra Capital Company, Nomura Financial Advisory And Securities (India) Pvt Ltd and SBI Capital Markets are the book running lead managers of the Aadhar Housing Finance IPO, while Kfin Technologies is the IPO registrar.
Read all IPO news here
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Published: 11 May 2024, 09:52 AM IST
British Columbia’s finance minister has announced she won’t be running again in the next provincial election after serving in the legislature for nearly two decades.
Katrine Conroy said it will be hard to leave the people she’s worked with over the years, but at 66, it’s time to step back to spend time with her family.
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Conroy has held several portfolios under the New Democrat government and said it’s too hard to settle on a “greatest accomplishment,” but she’s especially proud of her work to waive post-secondary tuition fees for former youth in care.
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She has also served as forests minister, and she thanked Premier David Eby and his predecessor, John Horgan, during the announcement on Friday, saying they “had the courage to appoint this rural woman to cabinet.”
Conroy was first elected in 2005 to represent West Kootenay-Boundary, then re-elected in 2009, 2013, 2017 and 2020.
She said one of her sons had reminded her that a Conroy had been on ballots in the region since 1986. That’s when her late husband Ed Conroy first ran as a school board trustee before he too served as an MLA between 1992 and 2001.
“That’s 38 years of our family supporting both of us in public service to our communities,” Conroy said at an announcement in Castlegar in the southern Interior, her voice faltering with emotion.
“I have been here as an elected official since (2005) and vicariously through my husband when he was an MLA for 10 years.”
In addition to finance, Conroy currently serves as minister responsible for the Columbia Basin Trust, Columbia Power Corporation and the Columbia River Treaty.
She said her work will continue until someone is elected to replace her.
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While the NDP were in opposition before the 2017 election, Conroy was the critic for seniors and Interior economic development, among other roles.
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