Sponsors seen seeking competitors’ loans

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By Owen Sanderson
19 May 2020

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.

“We had a wave of sponsors thinking about debt buy-backs for their own portfolio companies, and we have also seen certain sponsors looking opportunistically at buying debt in companies they don’t own,” said Alex Robb, finance partner at Ropes & Gray in London.

Buy-back interest peaked in mid ...

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