Sector trumps structure as tech, pharma fly despite leverage

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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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