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After the crisis: A few more deals and a slice of Pizza | Advantage Dealbook

OAK LAWN, IL - SEPTEMBER 22:  A sign hangs abo...

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Being a Friday round up as we are incessantly tired of watching the crystal ball explode in our hands, this one will be a light and frothy round up of whatever you wanted to catch up with..

Guess who’s making money from Pizza

Moynihan is. Or rather, BofA has a $800 mln stake in one of the largest US franchises of Pepsi’s Pizza Hut (Yum is but a stowaway) NPC restaurants already owns 1140 Pizza Hut outlets and PE firms are bidding like many other deals in September

BofA still has over $50 bln in good assets like this one and the stake in CCB ( another $10 bln still with the bank) that has yielded $18 bln already for its Capital Adequacy catch up with Dodd Frank and Basel 3. Basel 3 requirements kick in by 2019 though asome limited impact will be in place by 2013

IF Pizza Hut is selling pies, can Yum be far behind

While pies seem to be in a buyers market, arranging high yield debt may prove tough in a dead leveraged finance market and now banks as competitors in the same unrated brackets. Still Yum is using the good times to roll off A+W and Long John Silvers. Goldman Sachs advised Yum on the two deals which are selling off the two American focussed fast food mini marts to a conglomerate of FRanchisees in both cases. The A+W purchase is led by a single franchisee “A Great American Brand” s Yum keeps its better known global brands KFC, Pizza Hut and Taco Bell. Yum had better results in China and the BRand FRenchisees of A+W and LJS ready to fire up the ovens in the USA

We would recommend he remianing Yum to many nvestors as the market stampede is not done but some companies are more visible than others

Appleby’s Franchisee Apple American was another advised by Goldman Sachs back in February 2011 Wendy’s is still looking for a buyer for Arby’ s Sandwiches An associate of Apollo now owns large chain CKE restaurants while 3G Capital bought up Burger King for more than $3 bln in 2010

Dealbook rankings: low on value, high on business

Bad times rolled on leveraged Finance in July and August dameningAugust deal flows the moset but as smaller niche boutiques Evercore and Rothschild found, there are a lot of deals on the table to keep the tickers on Dealogic moving

Banks Q3 income rerated

Goldman Sachs will report a $0.35 cents loss in Q3 next month according to downward revisions disclosed by Analysts yesterday. Citi and RBC analysts had earlier last week and before the ratings downgrades, slashed earnings estimates at all banks by more than half. Hoewever Cit rerated BAC to $0.61 cents from $0.18 cents

RBC expects a 33% fall in IB and Trading income for BAC and smaller NIMs at Citi (from WSJ) Citi is keeping a cammy silence on this commentary as Pandit’s IB Analyst team attacks other banks

Barclays’ downgraded Bank earnings after the ratings downgrade on Thusday, JP Morgan had earlier used the Global Investor Conference on Tuesday to show another $1 bln for its Investment banking unit while Trading profits be likely down 30%

Insurers Travelers, Chubbs and London based Lloyds earnings are expected to fall after the east coast hurricanes in August A Goldman Sachs loss in Q3 surprised us and the markets took down the stock further this week making it 13% since last Thursday and 44% catching up with the sector , since January

The Citi estimate for aGoldman Sachs was still a profit of $0.10 cents revised down from an earlier $2.70

Disclaimer: Though others have found value picks in the banking sector since the

Image representing Goldman Sachs as depicted i...

Image via CrunchBase

week before last pending “the usual” downtrading of trading income, we hav just added a hshort position on Goldman Sachs after yesterday’s crisis of confidence in the markets in our recommendation list, we are just not sure about JP Morgan yet

And brokers make up the triad

Though for brokers a bear market is a clear signal as always, Bernstein research explicitly marked down TD, Charles Schwab and LPL as margin lending becomes scarce and low volumes force the brokers’ hand. Brokers have to waive fees on Mutual Funds from now.



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One comment on “After the crisis: A few more deals and a slice of Pizza | Advantage Dealbook

  1. Ashley
    November 24, 2011

    Retail brokers have stopped stocking large amounts of high yield debt in their inventory, so it will be a challenge.


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