IPC Systems

restructured

Telecom / Financial Infrastructure — Silver Lake / Cerberus

Deal Terms

Entry Year2007

Entry EV$0.75B

Entry Multiple10x

Leverage7x

Debt Amount$0.525B

Risk Metrics

LTV (est.)70%

Debt / EV0.70x

Notes

Silver Lake/Cerberus $750M LBO of trading floor communications company (2007). Debt exceeded $525M. Financial crisis crushed Wall Street spending. Defaulted on loans 2014. Lenders took ownership via debt-for-equity. Banks reduced physical trading floors = secular decline in IPC's core market. PE bet on Wall Street infrastructure at exactly the wrong time.

Sponsor

Silver Lake$100B AUM