Private equity breaks one more levfin taboo: change of control puts are binned

Private equity funds have found another way to wring more favourable terms out of leveraged loan and high yield bond investors: selling them debt without the usual rights to repayment if the borrowing company gets taken over, writes Stefanie Linhardt.

  • 19 Apr 2013

Change of control put options are standard on both bonds and loans in the leveraged finance market, but in the present bullish climate, issuers feel able to dispense with them.

This ‘portability’ feature suits private equity funds, as they are still finding it hard to sell companies at ...

Please take a trial or subscribe to access this content.

Contact our subscriptions team to discuss your access: subs@globalcapital.com

Corporate access

To discuss GlobalCapital access for your entire department or company please contact our subscriptions sales team at: subs@globalcapital.com or find out more online here.

GlobalCapital European securitization league table

Rank Lead Manager/Arranger Total Volume $m No. of Deals Share % by Volume
1 Bank of America Merrill Lynch (BAML) 4,755 19 11.75
2 Citi 4,288 14 10.60
3 Rabobank 2,633 4 6.51
4 Goldman Sachs 2,615 4 6.46
5 Barclays 2,603 8 6.43

Bookrunners of Global Structured Finance

Rank Lead Manager Amount $m No of issues Share %
  • Last updated
  • Today
1 Citi 82,406.77 239 12.85%
2 Bank of America Merrill Lynch 71,317.58 219 11.12%
3 Wells Fargo Securities 62,984.09 198 9.82%
4 JPMorgan 45,920.23 145 7.16%
5 Credit Suisse 37,235.50 114 5.81%