Secondary LBOs Fuel High-Yield Issues

Secondary leveraged buyouts are becoming a stock feature of the European high-yield market as LBO sponsors hungry for assets snap up existing LBOs and use the high-yield market to fund their purchases.

  • 01 Oct 2004
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Secondary leveraged buyouts are becoming a stock feature of the European high-yield market as LBO sponsors hungry for assets snap up existing LBOs and use the high-yield market to fund their purchases.

Two secondary LBOs, also known as LBOs of LBOs or LBO squareds, have occurred in recent weeks. Market players expect the lack of new assets in the private equity market to fuel more secondary LBOs, some of which will end up being financed in the bond market. "Sponsors have capital to spend and there haven't been that many new assets up for auction this past year," said Jim Amine, head of European leveraged finance at Credit Suisse First Boston in London.

In Europe, E5 billion of secondary LBO senior debt across 15 deals has been syndicated this year, up from E3.5 billion across 11 deals in all of last year, according to CSFB.

Recent examples include a sale to finance Credit Suisse First Boston Private Equity and Texas Pacific Group's acquisitions of Grohe (BW, 9/13), which was followed a week later by a E150 million bond from German auto parts company Auto Teile Unger. That sale was part of a secondary buyout of the company by Kohlberg Kravis Roberts.

  • 01 Oct 2004

All International Bonds

Rank Lead Manager Amount $m No of issues Share %
  • Last updated
  • Today
1 Citi 280,265.07 1033 8.97%
2 JPMorgan 255,894.98 1165 8.19%
3 Bank of America Merrill Lynch 248,918.80 861 7.97%
4 Goldman Sachs 192,023.30 615 6.15%
5 Barclays 183,846.60 703 5.89%

Bookrunners of All Syndicated Loans EMEA

Rank Lead Manager Amount $m No of issues Share %
  • Last updated
  • 20 Aug 2017
1 HSBC 28,458.91 116 7.05%
2 Deutsche Bank 26,902.99 90 6.66%
3 Bank of America Merrill Lynch 24,997.04 70 6.19%
4 BNP Paribas 21,217.62 120 5.25%
5 Credit Agricole CIB 19,454.23 112 4.82%

Bookrunners of all EMEA ECM Issuance

Rank Lead Manager Amount $m No of issues Share %
  • Last updated
  • Today
1 JPMorgan 13,671.74 61 7.87%
2 Citi 12,076.06 76 6.95%
3 Morgan Stanley 11,899.85 66 6.85%
4 UBS 11,800.30 47 6.80%
5 Goldman Sachs 11,111.93 58 6.40%