Sector trumps structure as tech, pharma fly despite leverage

By Owen Sanderson
22 Apr 2021

Investors appeared happy to tolerate soaring leverage in favoured sectors, such as tech or pharma, on Thursday, while Covid-19 recovery candidates are beginning to look expensive, as much of the rally that began in November has played out.

Unit4, a software-as-a-service (SAAS) company, is marketing a €675m term loan at a spread of 400bp-425bp and a price of 99.50, to finance its takeover by a consortium led by TA Associates.

The loan carries B3 and B- ratings from Moody’s and S&P, meaning it is not in ...

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