Quote:
Originally Posted by Slappin Fish
Penthouse (FFN) borrowed 500 million from the banks but to pay who? Think about it a bit more..
Two years, countless threads, you still dont understand LBOs. FUCK you are thick.
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I guess you also missed how the sale from Various Inc to Penthouse was for " for $500 million in cash and
securities." From everything I have heard and the fact that Penthouse wasn't exactly profitable nor did they have a good track record / credit to be able to get a half a billion dollar in loans from banks, the majority of the sale was for securities and not much was for cash. Andrew wanted desperately to dump AFF, Lars always wanted to take a company public, Penthouse was a broke dick that needed AFF's sales and profitability to try to go public (as all Penthouse did was go bankrupt and lose money). Going public would allow them to get the money so they could pay for the sale and make a big score themselves. Penthouse sold Various Inc that they would get their big pay day once the IPO went through, which originally was for 500M, then 250M and finally went through for 50M. Andrew had no other buyers so he took the deal.
Educate yourself kid before you come in here talking about shit you have no idea of... still would love to hear your proof why you seem to believe penthouse borrowed 500M from banks and paid Various Inc all cash for the sale.
