DawgTalkers.net Forums DawgTalk Everything Else... Berkshire-Backed Pilot Seeks $3.5 Billion Loan to Pay Haslams

Berkshire-Backed Pilot Seeks $3.5 Billion Loan to Pay Haslams
Paula Seligson, Katherine Chiglinsky and Devon Pendleton
Fri, July 16, 2021, 12:46 PM·1 min read

(Bloomberg) -- The Haslam family, one of the richest in the U.S., is taking advantage of the booming leveraged loan market to help cash out of its holdings of Pilot Travel Centers LLC, owner of the Pilot Flying J truck stop chain.

Pilot Travel Centers is borrowing $3.5 billion to buy back $2.3 billion of preferred equity held by the Haslam and the Call families, and to refinance debt. The families started selling the business to Warren Buffett’s Berkshire Hathaway Inc. in 2017, with the conglomerate planning to increase its stake to 80% through 2023.

The Knoxville, Tennessee-based Haslams are among the U.S.’s richest families with a net worth of more than $12 billion, according to the Bloomberg Billionaires Index. Their fortune can be traced back to 1958, when James Haslam II paid $6,000 to take over a Virginia gas station. In 2009, Pilot acquired Flying J, founded by Jay Call.

Haslam’s son, Jimmy, 67, was CEO of the business until January, and also owns the Cleveland Browns football team. The family will retain 20% of the business after 2023.

Representatives for Wells Fargo & Co., which is leading the loan sale, and for Pilot declined to comment. Berkshire Hathaway didn’t immediately respond to a request for comment.

A lender call for the $3.5 billion loan is scheduled for Monday at 1 p.m. New York time, with commitments due July 29. The debt being refinanced includes a revolving credit facility and a portion of a different term loan, both maturing in 2024.



https://finance.yahoo.com/news/berkshire-backed-pilot-seeks-3-164604204.html

Just coincidentally, I know an underfinanced major league baseball team that's looking for a minority (30-40%) owner/partner if the Haslam family is looking around for a place to invest about $400M of that sum.

Just wondering, are their legal troubles under control yet? I mean the ones stemming from the issues trucking companies brought up.

I'm thinking it has.....

Pilot Flying J Reaches $92 Million Settlement With Feds

https://www.truckinginfo.com/119174/pilo...udulent-conduct

This was the settlement reached to avoid federal prosecution.

Thanks for posting.

If you read that, it makes it clear that individuals are not out of the woods yet. The Corporations appears to be out of harms way, but they are agreeing to help with tracking down those within the company that may be at fault.

So, it begs the question, is Jimmy out of trouble?

In the article, it said this:



"Over the next two years the company will pay $92 million and will fully cooperate with the federal government’s investigation of fraudulent conduct within the company’s diesel fuel sales discount programs, including keeping the government advised of the status of its internal compliance program, which it voluntarily initiated last year."

Under the title page, it said this:

"July 14, 2014 • by Evan Lockridge"

So by my calculations, we are 5 years past the cooperation period stated in the article.

I'd say if this is still on the DOJ's plate, it becomes more of a political conversation best left for another forum.

Maybe... But Haslems are the owner of an NFL team. As such it's still a topic in Football Circles. If it can effect the NFL or teams or fans, it's Football. Can't get around it.

Well at least thus far it hasn't been called a communist plot so we're ahead of the game at this point. It's probably better to leave it at that.

Maybe in Browns forums like this one. Football circles?

Maybe...but probably more in the old news file that people don't really talk about, or even remember unless prompted.

Well yeah, where are we discussing it? a football forum...

Like I said, we are because it is our team. I get that. I don't think many fans of other teams are discussing it, maybe even recall it to any degree.

I only mentioned that because when you said it was being discussed in football circles, it can be interpreted as in many circles. I simply pointed out it could be very limited circles.

In the end, enough time has passed I don't think there is much chance anything happens at this point. If someone now "steps forward" with claims of Haslam involvement, that certainly would bring forward legit questions about why now and not 6-7 years ago? Especially if it involves someone getting out of jail because of the stepping forward.

I'm speaking of it because I Wonder what effect if any, it will have on the Browns...Honestly, beyond that, I don't really care.. it's Jimmys problem to deal with.

To me, when he handed the title of co-owner to Dee and named in son in law as president, it was a way of sheltering the team from any blowback.

Not at all sure that's what happened, but if it is, I'm glad he thought ahead...

From outward appearance it seems that the timing of these events makes that a conclusion one could reasonably come to. But much like yourself I have no idea if that was the reason for those moves.