Although Miller testified he believed the interest on a Preston Hollow loan to Roosevelt University in Chicago to refinance debt was higher than the market rate, he admitted he didn’t know the specific terms of the deal or follow up with officials of the school.
Miller said he’d gotten reports about questionable Preston Hollow deals that “had been gnawing at me for two years.” Once the Texas firm became more of a threat, he said, he decided to share his concerns with other bond-market participants.
In a call with Goldman Sachs officials, Miller derided Preston Hollow’s private-placement deals as “private bull--- business” that posed a threat to the entire bond market.
Miller testified that the purpose of the call to Goldman was to keep the pipeline of high-yield deals between the firms going, rather than as an ultimatum to cut ties to Preston Hollow.
“Ultimately, my goal is to keep the partnership, the new-issue allocations, to keep that going into next year,” Miller said.
The case is Preston Hollow Capital LLC v. Nuveen LLC, 2019-0169, Delaware Court of Chancery (Georgetown).
This story provided by Bloomberg News.