Bear Stearns biz nixes IPO
Everquest Financial, a company formed by Bear Stearns to invest in repackaged debt securities, has pulled back from plans for a $100 million IPO.
Everquest Financial, a company formed by Bear Stearns to invest in repackaged debt securities, has pulled back from plans for a $100 million IPO.
The Cayman Islands-registered business is jointly run by Bear Stearns Asset Management and Stone Tower Capital LLC, a New York-based hedge fund firm specializing in debt.
“The company has decided that it does not wish to proceed with its initial public offering of common stock at this time,” Everquest said in a statement filed with the Securities and Exchange Commission yesterday.
Everquest manages a portfolio of collateralized debt obligations, which are investment-grade securities backed by packages of corporate loans, asset-backed securities and other assets.
Everquest, which held $720 million of million of CDOs and other assets at the end of 2006, filed plans for an IPO on May 9.
The decision against the IPO came one week after New York-based Bear Stearns Cos. Inc. agreed to lend as much as $3.2 billion to bail out its High-Grade Structured Credit Strategies Fund, which was down about 5% during the first four months of the year (InvestmentNews, June 22) .
Meanwhile, creditors are still negotiating with Bear Stearns over the High-Grade Structured Credit Strategies Enhanced Leverage Fund, a source told Reuters.
That fund owes $1.1 billion.
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