Corey Ribotsky News » PIPEs

Corey Ribotsky in HedgeWorld

Corey — Sun, 14 Mar 2010 11:32:29 +0000

In June, 2009 the On-line magazine ‘HedgeWorld’ featured an article written by Corey Ribotsky discussing what he calls “The Greatest PIPE Deal of Our Time,” referring to the United States government’s plan to bailout the giant auto manufacturer General Motors from their imminent financial collapse.

In the article Mr. Ribotsky makes a strong case that what the federal government is doing actually has within it all the elements of a PIPE deal, or rather a Private Investment in a Public Entity, but it is not being referred to as such because of the discomfort the public has with these particular types of financial strategies.

In order to prove his thesis Corey Ribotsky first defines exactly what makes something a PIPE transaction, and then he explains that this is exactly what is going on with the bailout strategy for General Motors by the United States of America.
To quote Mr. Ribotsky,

“When one compares the above definition of a PIPE transaction to the proposed GM bailout plan, the similarities are glaringly obvious.” Summarizing, Corey Ribotsky states that, “the government led bailout plan of GM mirrors a PIPE transaction in many ways. The bondholders who enjoy a secured senior position will survive the new company. They will receive stock, interest on their debt and warrants for future compensation. Finally, we have the ultimate accredited investor—the United States of America—awarded preferred stock in exchange for debt, which is then registered so it can be converted and sold to the public for a profit.”

“If it looks like a duck and quacks like a duck, then it must be a duck.”

Corey Ribotsky Quoted on Financial Week

Corey — Tue, 29 Sep 2009 13:22:48 +0000

Quoted in the on-line business magazine “Financial Week” Corey Ribostsky of the NIR Group had this to say:

“The amount of companies looking for PIPE financing or PIPE-like financing has increased somewhat as other secondary and follow-on offerings have been stalled on Wall Street.”

As you may already be aware, PIPEs are “Private investments in public equities.” This investment strategy is becoming increasing popular as control investments are harder to execute. Companies feel compelled to utilize PIPEs for their financing when the usual capital markets do not provide financing and the usual equity markets do not exist for that issuer.

NIR Group of Roslyn Brings Ratzker on Board

Corey — Fri, 10 Jul 2009 21:05:38 +0000

“I’m excited to join a pioneer in the direct investment space and I look forward to contributing to the firm’s continued success,” said Mr. David Ratzker after his appointment as Portfolio Manager at the investment firm of the NIR Group of Roslyn, New York.
Mr. Ratzker, a graduate of Yeshiva University and recently of the Yorkville Advisors investment firm, is uniquely qualified to oversee a portfolio of equity investments in publicly traded companies.

Corey Ribotsky Interview Reveals Due Diligence Needed

Corey — Tue, 26 May 2009 12:20:02 +0000

As the economy slows obtaining traditional types of financing becomes increasing difficult. In an article from the July, 2008 edition of “Entrepreneur Magazine” Corey Ribotsky, the managing member of The NIR Group was interviewed to find out his opinion of a less traditional investment vehicle, PIPES, or private investments in public equities. Advising caution, Ribotsky remarked,

“The Company has to know who they’re getting into bed with. You want someone who’s going to be a financial partner as opposed to someone who’s just looking for a trading play.”

“Entrepreneur Magazine” Features Corey Ribotsky of NIR Group

Corey — Wed, 08 Apr 2009 11:41:01 +0000

A recent article in “Entrepreneur Magazine” featured Corey Ribotsky, the founder and managing member of the N.I.R. Group, headquartered in Roslyn, NY, discussed the increased popularity of private investments in public entities, otherwise known as PIPEs. Despite the generally sluggish economy PIPE investing is seen to be rising. Ribotsky urges due diligence as essential when contemplating deals of this genre.

The article focuses on PIPEs becoming more mainstream as investment options while traditional financing becomes more difficult to obtain as the market for secondary offerings slows.

The article, entitled “Terms of Endearment” cautions that the terms of these deals must be meticulously scrutinized. Ribotsky commented:

“The company has to know who they’re getting into bed with. You want someone who’s going to be a financial partner as opposed to someone who’s just looking for a trading play.”