Private Equity

  • Sponsors seen seeking competitors’ loans

    Sponsors seen seeking competitors’ loans

    Some financial sponsors are said to be trying to purchase loans from their competitors’ portfolio companies, as an opportunistic way to benefit from the coronavirus-driven disruption. But the European loan market’s restrictive transfer provisions make this a legal high-wire act.

  • Water park group finds extra liquidity

    Water park group finds extra liquidity

    Theme park group Parques Reunidos has raised an extra €200m from a "select group of existing investors", as it seeks to combat the coronavirus-impaired operating environment that has shut many of its water park locations across Europe.

  • Euro high yield market not ready to step up for rescue finance

    Euro high yield market not ready to step up for rescue finance

    While the US high yield market has delivered a deluge of secured rescue bonds to bail out airlines, cruise lines, car rental firms, hotels and other "zero revenue" virus casualties, European high yield has stayed sedate, cautious, and stuck to the safest sectors. Can the European bond market rise to rescue financing?

  • First HY debut since virus crisis buoyed by oil storage boom

    First HY debut since virus crisis buoyed by oil storage boom

    Rubis Terminal looks set to make the first European high yield debut since the coronavirus crisis hit, announcing a new €410m issue to fund a minority investment by I Squared Capital. Business has boomed at the company, which operates bulk liquid storage, thanks to the collapsing oil price.

  • Sponsors mull cost of turning to state support schemes

    Sponsors mull cost of turning to state support schemes

    With leveraged companies largely shut out of central bank bond buying and price support schemes, sponsors are mulling government-backed lending schemes in several European countries, as they seek to show other creditors that they have abundant access to liquidity. But the schemes often come with strings attached, which could do nearly as much damage to a sponsor's investment thesis as a restructuring.

  • Sponsors set to turn to direct lenders to fund buyouts

    Sponsors set to turn to direct lenders to fund buyouts

    Direct lending funds are likely to be the best choice for sponsors looking to fund buyouts this summer, with investment banks still sitting on substantial bridge books, and simplicity and certainty of execution being the top priorities.

  • High yield crowd boo Selecta

    High yield crowd boo Selecta

    Coffee machine company Selecta’s high yield bonds dropped 24 points on Wednesday after it released awful numbers for the fourth quarter of last year — sending leverage shooting up well before any coronavirus impact. It was the first company in Europe to announce it had raised new super-senior debt from its sponsor, KKR Credit, which injected a €50m liquidity facility into the capital structure in March.

  • Verisure tiptoes into wide open HY market

    Verisure tiptoes into wide open HY market

    Hellman & Friedman-owned alarm company Verisure announced a new European high yield bond on Thursday, the first after a drought of more than seven weeks. The deal is a conservative place to restart high yield primary markets, but bankers said there is appetite for more challenging issuers to come.

  • Private equity funds warned over quarter-end numbers

    Private equity funds warned over quarter-end numbers

    The International Private Equity and Venture Capital Valuation Guidelines (Ipev) body has warned funds to take special care over quarter-end reporting and valuation of portfolios, so that marks for sponsor-owned companies reflect as well as they can the devastation of the coronavrius pandemic, rather than the benign conditions prevailing at the start of the year.

  • Private equity is just another ownership structure

    Private equity is just another ownership structure

    Outrage has erupted among US progressives at efforts from the private equity industry to ensure their portfolio companies get a piece of government support for corporates. The buyout barons don’t do much to endear themselves to the public, but sponsor funds are just another legal vehicle for owning equity — and there’s no point punishing a company for its owners.

Private Equity News Archive