The Morning Leverage: EIG Global Energy Caught by Breitburn’s Liquidity Woes

From this morning’s LBO Wire:

EIG Global Energy Partners is starting to feel the pinch from the liquidity issues faced by oil and gas company Breitburn Energy Partners, reports Shasha Dai. EIG and co-investors pledged up to $1 billion in preferred stock and debt to the company in March 2015.

Breitburn said it is suspending dividend payments on preferred stock and skipping interest payments on certain bonds. The company has 30 days to pay up or it will trigger a default. However, Ms. Dai notes that EIG could have some downside protection should Breitburn enter into a restructuring.

More stories available to LBO Wire subscribers:

Kohlberg & Co. agreed to buy American Capital-backed behavioral health care provider The Meadows of Wickenburg LP…North Castle Partners collected at least $221 million so far for its sixth fund…And Aurora Behavioral Health Care, which owns and operates 14 acute psychiatric hospitals, hired Goldman Sachs Group to help it find an investor.

(LBO Wire is a daily newsletter with comprehensive analysis of all the investments, deals, fundraisings and personnel moves involving private equity firms. For a two-week trial, visit, scroll to the bottom and click “try for free.”)

Elsewhere on the Web:

Verizon Communications’s quest to acquire assets from Yahoo received a lift as several other prospective bidders dropped out, Douglas MacMillon and Ryan Knutson report for The Wall Street Journal. But the company may still go head-to-head with a handful of private equity bidders.

Also in the Journal, private equity firm Vista Equity Partners agreed to purchase publicly traded Cvent for about $1.65 billion, Austen Hufford reports.

China is quickly becoming a go-to destination for Hollywood directors and screenwriters, Lilian Lin writes for the Journal’s China Real Time blog. They include U.S. filmmakers Joe and Anthony Russo, who recently formed startup studio Anthem Pictures with backing from Chinese private equity firm HDQH

Paris private equity firm Astorg Partners is nearing a final closing on its sixth fund, which has a €2.1 billion cap, Yolanda Bobeldijk reports for U.K. sister publication Private Equity News. (Subscription required.)

Also in PEN, private debt firms may be due for more regulation in Europe as part of a continent-wide Capital Markets Union push, Elizabeth Pfeuti reports.

Write to Laura Kreutzer at

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