Johnson Controls jumpstarts leveraged finance mart

Johnson Controls
By Owen Sanderson
07 Mar 2019

The $10.2bn debt package backing the buyout of Johnson Controls’ Power Solutions unit by Brookfield and CDPQ will set the tone for leveraged capital markets in the first half of 2019. But despite high hopes for more investor-friendly deal terms after successful buy-side resistance on last week’s loans, the Power Solutions covenants package sees the pendulum swing back again, writes Owen Sanderson.

The deal — the largest LBO since September — is one of the few jumbo acquisition financings that was known to be hitting the market in early 2019, as 2018’s poor fourth quarter conditions had dampened M&A activity, keeping sponsors from bringing new projects forward and companies from ...

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