Some Rue21
I picked up some Rue21 (Ticker: RUE) today at $40.98. I believe there’s a good chance that this deal closes soon at the buy out price of $42.00 by Apax Partners. Lots of skepticism surrounding this deal as the same store sales were / are trending down, which obviously spooked the bond buyers. It looks like the banks will be able to sell the paper at a steep discount to get this deal done. This position makes up ~ 8% of my portfolio. As I say, we’ll see soon...
posted by Money Turtle @ 10:55 AM
5 comments
5 Comments:
Interesting - are the banks stuck with the bonds?
Yes, the banks are basically stuck. They committed to funding this deal so they either keep the bonds on their books or discount it so they find buyers and eat the difference. I don't see any outs for the banks.
Sounds like this should close next week...
Wow that was fast. Did anyone see it coming that this should close so quickly?
There were indications that if everything fell into place, it was going to close on the 10th. Congrats on hanging onto Rue21!
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