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 ...

Please take a trial or subscribe to access this content.

Contact our subscriptions team to discuss your access:

Corporate access

To discuss GlobalCapital access for your entire department or company please contact our subscriptions sales team at: 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) 6,665 23 13.02
2 Citi 5,781 17 11.29
3 BNP Paribas 3,530 14 6.89
4 Barclays 2,853 9 5.57
5 Credit Suisse 2,783 8 5.44

Bookrunners of Global Structured Finance

Rank Lead Manager Amount $m No of issues Share %
  • Last updated
  • Today
1 Citi 99,250.27 279 13.13%
2 Bank of America Merrill Lynch 91,648.43 266 12.13%
3 Wells Fargo Securities 72,661.39 222 9.61%
4 JPMorgan 52,367.24 169 6.93%
5 Credit Suisse 41,885.89 127 5.54%