Hastings show high yield market will finance insurance LBOs

By Stefanie Linhardt
15 Oct 2013

Hastings Insurance Group raised £415m with high yield bonds on Monday to finance the takeover of 50% of its business by Goldman Sachs’s Merchant Banking division. Bankers claimed the deal was the first European insurance LBO to be financed in the high yield market.

The transaction furthers 2013’s trend of new sectors of the economy turning to high yield bonds.

“Financial institutions is a sector where the high yield investor base hasn’t seen buyouts,” the banker said, adding that it reminded him of the early days of the market when many deals introduced ...

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