Using convertible unsecured loan stock (Culs) along with cash could help different types of deals break the impasse between existing shareholders and bidders.
In an example like the first failed bid for Debenhams in July by Blackstone, Goldman Sachs and Permira, where a fairly full price was offered but institutional shareholders were unhappy with the decision to take the company private in principle, those shareholders could elect to receive 20% to 30% of the bid in the form of carried interest instruments.
Access intelligence that drives action
To unlock this research, enter your email to log in or enquire about access
