Swissport and Priory line up M&A deals

Swissport and the UK’s Priory Group are set to issue junk bonds backing their respective buyouts shortly — the first bonds backing takeovers to hit Europe’s high yield market this year and a further sign that some private equity houses prefer bonds to loans for funding their acquisitions. Swissport, which PAI is buying for Sfr1.2bn, will issue a Sfr750m Swiss franc and dollar denominated deal next week. Advent International announced a £925m takeover of Priory on Tuesday, which will be funded with about £500m-equivalent of bonds.