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The Apollo-led group is expected to put up about $3 billion in capital to back the deal, a relatively high amount of equity for a leveraged buyout but fairly standard for an energy deal.
Similar(58)
One of the reasons I have been so bearish is that there is an unusually high amount of risk in many industries, from both the debt and equity side.
It contains a high amount of fats.
Although regulators are pushing for higher capital ratios, this can be achieved either by increasing the amount of equity in a bank or by cutting its lending.
A small amount of equity has already been raised.
If either of these two factors is off, no amount of equity cushion is sufficient.
A further 54% borrow no more than the amount of equity their investors put into them.
Latest figures show that the amount of equity released more than doubled last year to £852m.
"Most companies take a considerable amount of equity risk," he said.
Investors would be assured of getting the amount of equity they want if the shares were hugely oversubscribed.
It has tripled the amount of equity that banks have to use to fund mortgages; it may tighten further.
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CEO of Professional Science Editing for Scientists @ prosciediting.com