Thursday, July 26, 2012

Gun manufacturer in the market today

It's a bit ironic that as the US tries to cope with the Colorado tragedy, a major firearms manufacturer is in the market raising money today. Freedom Group who owns brands like Marlin, Remington, Bushmaster, DPMS/Panther Arms is out there trying to raise debt capital.
LCD: - FGI Operating/Freedom Group approached lenders this afternoon via Bank of America Merrill Lynch and Deutsche Bank for a $75 million fungible add-on to its covenant-lite institutional loan that will be used in part to redeem preferred equity held by Cerberus Capital Management, its controlling shareholder, sources said.
It's also interesting that the proceeds are used to partially take Cerberus out of its position. Why not, since the market for corporate debt is hot and apparently so is the market for guns. And these days Cerberus probably wants out.
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