Another IPO Heyday?

Sheahan, Matthew
May 2011
Mergers & Acquisitions Report;5/2/2011, Vol. 24 Issue 18, p19
The article analyzes the plan of Allison Transmission to raise 750 million U.S. dollars in an initial public offering (IPO). It suggests that the flotation reflects the more common trend in which sponsor-backed companies use IPO proceeds to pay down debt. Jeff Peskind, chief investment officer with Phoenix Investment Adviser, believes that management teams prefer less debt on the company than they did pre-crisis, and that the private-equity owners of junk-rated companies are being pressured by investors to return money.


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