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 The stock of publicly traded private equity firms has gotten roughed up since the credit crisis began back in July 2007, but Intermediate Capital Group plc is hoping its shareholders will forgive and forget its announcement of a new $576 million rights offering.The London-listed investment firm's plan gives investors a bargain basement price for participating. The firm plans to issue 302 million shares at 121 pence, a 74% discount to Wednesday's closing price and gives them seven new shares for every two they already own, according to a statement on its Web site. The firm's managing director Tom Attwood said, "The extraordinary state of the credit markets, the absence of liquidity in the banking sector and changes in the competitive landscape have provided ICG with significant opportunities to invest." While Intermediate says its portfolio is in good shape, the firm plans to use the money to extend loans, refinance portfolio companies and buy debt from other investors, according to Bloomberg. Investors will vote on the plan on July 20. Shares of U.S. traded LBO firms like American Capital Group Ltd. (NYSE:ACAS) and the Blackstone Group LP (NYSE:BX) have been under pressure for the last 18 months as a dearth of leveraged financing crimps their ability to do more deals, while the recession takes a toll on the fortunes of their portfolio companies. - George White
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