Buy-out companies are tapping non-traditional funding avenues to overcome difficult IPO and bank loans markets? TPG Capital, which has around US$52bn in assets under management globally, is considering an expensive high-yield bond for precision engineering firm United Test & Assembly Centre. TPG had in June 2011 looked at an S$500m IPO.
KKR, which has around US$62bn in assets under management globally, became the first private equity fund to use a high-yield bond to refinance a buyout loan in Asia when it took out a US$300m five-year bond for Singapore technology company MMI International, in February this yr. KKR had in March 2011 looked at an IPO exit for MMI worth S$1bn (then US$785.7m).
In April, it spun that it was planning an IPO for MMI worth raise between US$400m to US$500m. The IPO was expected to take place in the third quarter. More.
Given market conditions, not likely.