Private equity titans Blackstone Group Inc. and Carlyle Group Inc. are sending a message to the companies they control: Do whatever it takes to stave off a credit crunch.
At Carlyle, the measures aren’t widespread, other people said. The firm has been having broad discussions with management teams at portfolio companies and recommended drawing credit lines in certain instances, according to people familiar with the matter. Decisions are based on industries, regions and other factors, the people said.The moves — along with similar plans by Hilton Worldwide Holdings Inc., Wynn Resorts Ltd. and Boeing Co.
A sudden and sustained increase in companies tapping credit lines could eventually strain banks if conditions become so dire that borrowers won’t be able to meet their obligations.Lenders offer revolving credit lines to strengthen relationships with companies and don’t typically intend for them to be drawn upon en masse. In normal times, revolvers serve as the corporate equivalent of credit cards, giving companies room to borrow as needed and repay when shortfalls ease.
Oil and natural gas companies can come under particular funding stress when prices fall. That’s because their credit lines are periodically updated based on market prices, potentially motivating companies to tap them early.
What could go wrong
We have summarized this news so that you can read it quickly. If you are interested in the news, you can read the full text here. Read more:
Canada Canada Latest News, Canada Canada Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
Blackstone asks its companies hurt by virus to tap credit lines: BBGPrivate equity firm Blackstone Group Inc is asking companies it controls to draw... why do they need to tell them this ?
Source: Reuters - 🏆 2. / 97 Read more »
People are furious Saudi Aramco dressed a worker up as hand sanitizer - Business Insider'Shocking contempt for human dignity': Saudi Aramco dressed up a migrant worker as a human hand sanitizer dispenser, and outraged people are calling the stunt racist and shameful So racist and shameful... look at that sad Dettol baby 😫 Shameful is THE BUSINESS INSIDER dirty money 🤫
Source: BusinessInsider - 🏆 729. / 51 Read more »
Tesla is now the highest-valued US industrial company after overtaking Boeing (TSLA) | Markets InsiderTesla is now the highest-valued industrial company in the US, as its market capitalization overtook Boeing's on Wednesday. Tesla's market ... markbspiegel And great for the nation - at 3x the labor per car, when they drive all the old efficient legacy out business, employment will skyrocket! markbspiegel Tesla's lofty valuation not realistic just like the rest of Unicorns in Silicon Valley. On the otherhand, Boeing's valuation is way under rated thanks for mishandling the P.R in the recent 737 crashes. There was nothing wrong with the Airframe or the Engines.
Source: BusinessInsider - 🏆 729. / 51 Read more »
Huawei granted another 45 days to do business with US companiesThe new provisional license expires on May 15. Prior to the extension, the previous license was set to expire on April 1.
Source: trtworld - 🏆 101. / 63 Read more »
U.S. oil company workers made a big, bad retirement bet: their own stockEmployees at the largest U.S. oil companies have lost around $5 billion in retir... It's all a big bad bet. “On a long enough timeline, the survival rate for everyone drops to zero.” Every company is doomed - long term. This is truly a prison planet and the god of this world is satan. 2Corinthiansc4v4 And the 'elite' are laughing at us. EatTheRich
Source: Reuters - 🏆 2. / 97 Read more »