GTRC arbitrage 9% close in Oct

**alex_li_98** Sat Sep 22, 2007 1:28 pm

GTRC arbitrage 9% close in Oct
Buyout by Bain Captial LLC. Expected to close in Oct (I saw 10/16 somewhere). $63 cash offer. Shareholder approved. Bridge financing in place if cannot sell bond in time. Should close without problem. Now is $57.76, spread is $5.24, more than 9% in at most 5 weeks. Great deal!

**baczhou** Sat Sep 22, 2007 5:30 pm

Re: GTRC arbitrage 9% close in Oct
alex_li_98 wrote: Buyout by Bain Captial LLC. Expected to close in Oct (I saw 10/16 somewhere). $63 cash offer. Shareholder approved. Bridge financing in place if cannot sell bond in time. Should close without problem. Now is $57.76, spread is $5.24, more than 9% in at most 5 weeks. Great deal!
sounds good

**shu_wd** Sun Sep 23, 2007 12:49 am

Re: GTRC arbitrage 9% close in Oct
Here's another one. but I think it's really difficult to analyze the real risk/reward. Like the event KKR/GS vs Harman, anything could happen

Genesco Inc. (GCO), Finish Line Inc. (FINL)
Premium offered: $7.99 or 17.18%
Acquirer: FINL
Target: GCO
Offer per share: $54.50 cash
Value of outstanding common equity: $1,242,600,000
Target share price: $46.51
Acquirer share price: $5.30
Expected closing: Fall 11/7/2007
Annualized gain: 133.41%

alex_li_98 wrote: Buyout by Bain Captial LLC. Expected to close in Oct (I saw 10/16 somewhere). $63 cash offer. Shareholder approved. Bridge financing in place if cannot sell bond in time. Should close without problem. Now is $57.76, spread is $5.24, more than 9% in at most 5 weeks. Great deal!

**alex_li_98** Sun Sep 23, 2007 1:23 am

I read somewhere GCO/FINL deal is risky.

But GTRC is realy near the pay day.

I spent hours looking at the spreads of diff deals. Some are too small. Some are so big and I quickly find out the finacing problem for the buyers are causing it.

But GTRC/Bain seems safe.

Alex[/quote]

**baczhou** Sun Sep 23, 2007 2:55 am

Re: GTRC arbitrage 9% close in Oct
i think GCO FINL deal already failed

shu_wd wrote: Here's another one. but I think it's really difficult to analyze the real risk/reward. Like the event KKR/GS vs Harman, anything could happen

Genesco Inc. (GCO), Finish Line Inc. (FINL)
Premium offered: $7.99 or 17.18%
Acquirer: FINL
Target: GCO
Offer per share: $54.50 cash
Value of outstanding common equity: $1,242,600,000
Target share price: $46.51
Acquirer share price: $5.30
Expected closing: Fall 11/7/2007
Annualized gain: 133.41%

alex_li_98 wrote: Buyout by Bain Captial LLC. Expected to close in Oct (I saw 10/16 somewhere). $63 cash offer. Shareholder approved. Bridge financing in place if cannot sell bond in time. Should close without problem. Now is $57.76, spread is $5.24, more than 9% in at most 5 weeks. Great deal!

**fuzzac** Mon Sep 24, 2007 5:48 pm

Re: GTRC arbitrage 9% close in Oct
baczhou wrote: i think GCO FINL deal already failed

Not yet, but I'd love to pick up some FINL shares IF the deal fails.

**lzhang** Wed Oct 10, 2007 3:17 am

Re: GTRC arbitrage 9% close in Oct
Nice picks. The deal was closed yesterday (10/09/2007) before schedule. A gain of 10% in less than 3 weeks!!!

alex_li_98 wrote: Buyout by Bain Captial LLC. Expected to close in Oct (I saw 10/16 somewhere). $63 cash offer. Shareholder approved. Bridge financing in place if cannot sell bond in time. Should close without problem. Now is $57.76, spread is $5.24, more than 9% in at most 5 weeks. Great deal!

http://www.sec.gov/Archives/edgar/data/1021113/000110465907073981/a07-26266_1ex99d1.htm

http://www.sec.gov/Archives/edgar/data/1021113/000135445707000300/xslF25X02/primary_doc.xml

**lzhang** Fri Oct 26, 2007 3:58 pm

Avaya (AV) deal is closed as of today @ $17.5/share

**blast_investor** Fri Oct 26, 2007 9:49 pm

Avaya (AV) is very interesting buyout case. AV got a little bit of scare just before the closing, and it still got closed.

Just as I would imagine, most deals would close. AV is another good sign for credit market.

**blast_investor** Fri Oct 26, 2007 10:56 pm

GCO/FINL deal is more risky.

Currently, FINL does not like to buy GCO, and lenders do not like to close. But the seller GCO is going into lawsuit to force closing.

It may be a lengthy fight. Eventually, GCO deal may still be closed in court, at original price or at lower price. The deal certainly is not so sure.

**lzhang** Fri Oct 26, 2007 11:07 pm

It might be closed @ lower price. Look at the case of LEND. Lone Star was sued by LEND to take the deal. The original offer was @ $15.10/share. Lone Star lowered the offer to $8.5/share. After the lawsuit, the deal was closed @ $11.75/share by 10/12/2007.

So those announced deals are hard to break up totally. If no related parties are involved, the worst case scenarios is a reasonably lower offer. (like LEND and HD deals). For cases like TRB which involves insiders/management as buyers, it is almost sure that the final deal will be closed @ the original offer.

blast_investor wrote: GCO/FINL deal is more risky.

Currently, FINL does not like to buy GCO, and lenders do not like to close. But the seller GCO is going into lawsuit to force closing.

It may be a lengthy fight. Eventually, GCO deal may still be closed in court, at original price or at lower price. The deal certainly is not so sure.

**alex_li_98** Fri Oct 26, 2007 11:12 pm

Guys, what do you think about MYE? 10% spread. Can it close in time by 12/15?

**lzhang** Fri Oct 26, 2007 11:37 pm

I do not know why not. At least that is what is expected. Do we still have the credit crunch problem? Who knows. But that is the reason why we have this large spread right now. Not too bad. Actually I like it, it makes free money so easy to find.

alex_li_98 wrote: Guys, what do you think about MYE? 10% spread. Can it close in time by 12/15?

Disclosure and Disclaimer

The author has a long position in MYE. The position can be changed without further notice.

This is not an investment recommendation to buy or sell any of the securities mentioned therein. All materials presented here are for information purposes only.

**lzhang** Sun Nov 11, 2007 3:03 am

According to its latest SEC filing, the deal is expected to close by 12/15.

Still >10% gain as of now for less than 5 weeks.

alex_li_98 wrote: Guys, what do you think about MYE? 10% spread. Can it close in time by 12/15?

http://www.sec.gov/Archives/edgar/data/69488/000006948807000066/pr11082007.htm

**lzhang** Thu Nov 15, 2007 4:45 pm

Less than 1 month for the deal of MYE to close, yet the spread is getting wider, now at 17% according to the closing price as of today (11/15/2007).

What a world! People are too busy to look for deals.