Zeev's Turnips Patch-No Politics (ZEEV)

[retired cfo]

Hey Zeev:

Just remember - two parts of the equation - rates and willingness of banks/markets to lend.

The credit committees of the banks are being VERY tough on terms, amounts, ratios, etc. LBO guys (KKR, Bain, Onex, Hicks-Muse, Willis Stein, etc. etc) were getting 5x-6x EBITDA 30 months ago. Now lucky to get 3.5x. Note how relatively few LBO deals have been announced; they can't get funded at terms that work.

I don't disagree with any of your points on impact or direction, only that banks are doing again what they did in 90-91, playing the spread on treasuries rather than loan to businesses.

all the best
gsm