Private equity firmAdvent International Corp.is arranging $400 million in debt financing for its June 4 buyout of recovery auditing specialist Connolly LLC, which nabbed a B2 rating from Moody's Investors Service. Moody's said Advent will also use additional equity to pay for the buyout. The ratings agency assigned a Ba3 rating to a proposed $240 million first-lien term loan due in 2018 and a $30 million revolver due in 2017. Moody's assigned a Caa1 rating to a proposed $130 million second-lien term loan due in 2019, as well.RBC Capital MarketsandSunTrust Banks Inc.are arranging the loans. Connolly said it will use Advent's network and services business expertise to drive growth. Moody's said it expects revenue to increase by 30% in 2012 and more than 10% in 2013, which should lower the debt-to-Ebitda ratio to under 5 times over the next 12 to 18 months though revenue will still be under $300 million annually. Larry Connolly, CEO of Connolly Inc., and Libby Connolly Alexander, CEO of Connolly Healthcare, will remain with the company as executives, shareholders and board members.
Rory Cullinan will leave his role as chairman of Royal Bank of Scotland Group plc's investment bank at the end of April. For other updates launch today's Movers & shakers slideshow.
Dodd-Frank, the conventional wisdom goes, will prevent a repeat of the events of the 2008 just at the Securities Act of 1933 and the Securities Exchange Act of 1934 made U.S. securities markets safe for individual investors. Paul Mahoney offers another view of the similarity between Dodd-Frank and the New Deal legislation in his new book Wasting a Crisis: Why Securities Regulation Fails. More video