The Predators’ Ball (58 page)

discount trading of,
27
,
289

downgrading of,
27

face (par) value of,
27
,
93

high-coupon, high-premium,
71

junk,
see
junk bonds, junk-bond takeovers

Penn Central,
34
,
112

People Express,
249
,
287

prices of, interest rates and,
70

rating of,
27
,
32

Riklis' use of,
37
–38

shorted,
52

straight-debt,
27
,
28

swapping of,
289

triple-A,
27
,
32
,
243

U.S. Treasury,
see
Treasury bonds, U.S.

with warrants,
69
,
71
,
73
–74,
114
–15,
120
,
289

Boylan, Michael,
244
–45

bracketing,
30

Bradford, Michael,
264
–65

Bradley, Bill,
258

Brant, Peter,
190

Brazil,
197

Brenner, Howard,
331

“Bridge Club, the,”
250

bridge financing,
165
,
248
,
249
–51,
345
–46

see also
commitment letters and fees

Bright Star,
305

Brown, David,
178
,
180
,
318

Brown-Forman Distillers Corporation,
256

Brownstein, Andrew,
211
,
216
,
217

Brumberger, Alan,
109
,
132
–33,
341

Buffett, Warren,
118

Buford, Anthony, Jr.,
24
–25

Bungalow 8 (Beverly Hills Hotel),
15
,
17
,
135
,
141
,
183
,
340

Burnham, I. W., II (“Tubby”),
29
–32,
42
,
48
,
57
,
259
,
302
–3

Boesky Day and,
330
–31

Milken and,
31
–32,
34
–35,
50
,
51
–52,
69

public company debate and,
69

Wynn and,
59

Burnham and Company,
29
–31,
42
,
43
,
51

as Jewish firm,
31

burnout,
252
–53

Burroughs,
258

Business Week
,
66
,
92
,
120
,
138
–41,
145
,
151
,
186
,
254
,
268
,
270
,
290
,
335

“buyback at a premium” (“bon voyage bonus”),
156

Icahn's congressional testimony on,
162

see also
greenmail

Caesars World,
308
–12,
328
,
352

Cahill, Gordon and Reindel,
205

Cambrent Financial Group,
54

Cameron, Dort, III,
83
–84,
182
,
278

Cannella, John,
172
–73

Canterbury Group,
81

Capital Cities/ABC,
145

Carlyle Associates,
81

Carr, Fred,
89
–90,
93
,
119
,
182
,
270
,
276
,
280
,
311
–12,
322

market competition encouraged by,
287

National Can deal and,
124
,
132
,
134

Revlon battle and,
212

Carter Hawley Hale,
160

“cash cow” strategy,
262

cash flow,
171
,
172
,
199

defined,
112
–13

Cashin, Richard,
289

Causey, Charles,
35
,
83
–84,
253

Caywood, James,
12
,
55
,
60
,
277
,
287

Caywood-Christian Capital Management,
12
,
277

CBS,
217

Cell Products,
116
–17

Central Jersey industries (CJI),
141
,
144

Centronics Data Computer Corporation,
339

certificates of deposit,
91

Chanticleer Investors, Ltd.,
81

Chapman, Alger (Duke),
41

Chapter 11 bankruptcy,
18
,
111
,
124
,
139
,
193
,
292
,
293

Charles of the Ritz,
234

Chasen's (Beverly Hills), dinners at,
14
–15,
183
,
260
,
341

Chemical Bank,
36
–37,
210
–11

Chicago Board Options Exchange,
152
,
160
,
300

Chinese paper,
27
,
38
,
44
,
75
,
120

Chinese Wall,
306
–8

Churchill, Winston,
258

Cinerama,
199
–200

Circus Circus,
60

Citibank,
210
,
277
,
289

Citicorp,
136
,
289

Clarendon,
281
–84

Clark, Douglas,
26

Clark Gable Estates,
53
–54

Clayton & Dubilier,
99
,
142

Clore, Alan,
159
,
196

CNA (insurance company),
35
,
83

Coastal Corporation,
13
–14,
107
,
127
,
130
,
131
,
203
–4,
208

Cochran, Susan,
359

Coffee-Mat,
110
–12

Cogen, Marshall,
79

Cogut, Craig,
54

Cohen, Claudia,
198
,
218
,
236

Cohen, Laurie,
348

Cohen-Hatfield Industries,
198
,
238

Cohn, Roy,
201

Coleman, Bertram,
25

Collins and Aikman Corporation,
295

Columbia Pictures,
111

Columbia Savings and Loan,
89
,
91
–94,
132
,
167
,
182
,
272
,
291
,
311

in Milken's money machine,
276
–277

political contributions of,
259
,
260

Comdisco,
347

commissions and fees,
286

fixed, end of,
63

for underwriting,
46
,
47
,
66
,
74
,
300
,
304

commitment letters and fees,
107
,
129
,
134
,
165
–66,
181

commodity-related bonds,
71
–72

Compact Video,
305

Compagnie Bruxelles Lambert,
48
–49,
62

competition,
291
,
296

junk bonds and,
47
–48,
71
,
209
,
248
–51,
287

Milken's views on,
249
,
358

takeovers' effects on,
262
,
263

Conan, Joan,
278

Concordia,
333

Congress, U.S.,
34
,
91
,
162
,
166
,
167
,
172
,
203
–7,
259
–63

Law's testimony to,
262
–63

Lipton's testimony for,
204
–5

Rohatyn's testimony for,
206
–7

Scherer's testimony to,
261
–62,
263

see also
House of Representatives, U.S.; Senate, U.S.

Conoco,
134

consent decrees,
37
,
120
,
160
,
279
,
321

Considine, Frank,
105
,
122
–26,
135
–136,
138
,
140
,
145
,
147
–48

owner-managers as viewed by,
263

Consolidated Cigar,
198

Continental,
173
,
175

convertible debt,
28
,
38
,
152
,
269

defined,
27

hybrid (“Western”),
69

corporate America:

Milken's transformation of,
14
,
19

Milken's views on,
12

Corporate Bond Quality and Investor Experience
(Hickman),
11

corporations:

below-investment-grade,
11
,
45

investment-grade, defined,
27

mergers of,
see
junk bonds, junk-bond takeovers; takeovers

rating of,
10
–11,
27
,
45

cosmetics business,
234
–35

Coss, Lawrence,
290
–92

coupons, on bonds,
73
,
82

CPC International,
233

Crane,
97

Cranston, Alan,
258

credit cycle, Grant's theory of,
268

Crown Zellerbach Corporation,
17
,
208

Cuozzi, Howard,
279

Dahl, James,
116
–17,
291
,
311
,
325
,
334
,
336
–37

D'Amato, Alfonse M.,
171
,
259
–60

Dan River,
161

Davis, Martin,
200
,
294
–95

Davis, Marvin,
145

Daylin Company,
39
,
292
,
326

DBL Americas Development Association,
353

Dean, James,
271

Dean Witter,
65

debt:

convertible,
see
convertible debt

in fall of 1986,
269

Grant's views on,
266
–68

preferred stock compared with,
265

refinancing of,
108
–9,
250
,
269
,
290

senior,
45
–46,
98
,
123
–24,
166

straight,
27
,
28

subordinated,
45
–46,
59
,
123
,
166
,
246

tax law and,
263
–64

Third World,
254
–55,
353

debt-to-equity ratios,
262
,
269
,
310

“deep-discount” bonds (fallen angels),
27
,
38
,
44
,
119
,
346

de la Madrid Hurtado, Miguel,
353

De Laurentiis, Dino,
54

Delaware Chancery Court,
199
,
225
–27,
232

Delaware State Supreme Court,
218
,
227

depreciation,
113
,
172

deregulation,
91
,
97
,
171

Diamond Shamrock,
322

Dillon, Read and Company,
30

discount-bond mutual funds,
33

Walt Disney,
13
,
107
,
164
,
167
,
291

diversification,
46
,
199
,
251
–53

divestitures:

Law's views on,
263

Revlon and,
210
,
211
,
231

Dole, Robert,
258
–59

Dominick and Dominick,
43

Donaldson, Lufkin and Jenrette (DLJ), Inc.,
164
,
169
,
251
,
253
,
334

Dorchester Government Securities,
82
,
300
,
312

Dorfman, Dan,
257

Dove, Guy, III,
132
,
279
–80,
282
,
284
,
327

Drapkin, Donald,
135
,
136

Revlon battle and,
194
,
196
,
199
,
208
,
215
,
218
,
220
,
222
,
225
–26,
234
,
237
–39

salary of,
237
–38

Drexel, Francis,
26

Drexel, Morgan and Company,
26

Drexel and Company,
26

Drexel Burnham,
30
–40,
42
–48

bonus pool at,
43
–44

cultural clash at,
42

finance department changes at,
43
–44

“high-value-added” course of,
46

medium-sized company growth and,
42
–43

Milken's firm within the firm at,
32
–33

self-image problem of,
42

“Shearson Mafia” at,
43

Drexel Burnham Lambert:

annual report of (1985),
255