LBO margins in Europe could hit all-time high

Leveraged loan bankers are expected to ask for record margins for underwriting any new European LBOs as original issue discounts (OIDs) on existing deals continue to widen. Banks have little desire to continue to subsidise private equity returns, which they have effectively been doing by selling at discounts well beyond their fees.

  • 28 Oct 2011

"If private equity want to do buyouts, their only option is to accept rising costs. The banks cannot subsidise the debt with OIDs," said one leveraged finance banker.

That point was underlined by a EuroWeek poll in which nearly half of respondents expected OIDs on leveraged loans in Europe ...

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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) 3,319 10 12.84
2 Citi 2,562 6 9.92
3 Goldman Sachs 2,150 3 8.32
4 Credit Suisse 1,822 6 7.05
5 Societe Generale 1,814 4 7.02

Bookrunners of Global Structured Finance

Rank Lead Manager Amount $m No of issues Share %
  • Last updated
  • 22 May 2017
1 Citi 41,255.30 117 12.99%
2 Bank of America Merrill Lynch 37,631.92 109 11.85%
3 Wells Fargo Securities 32,082.26 89 10.11%
4 JPMorgan 20,969.41 64 6.60%
5 Credit Suisse 16,754.47 44 5.28%