Bankers Eye LBO Deals In Spain
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Bankers Eye LBO Deals In Spain

Asset-backed bankers are cultivating Spanish private equity clients to generate leveraged buyout deals that will eventually yield whole business securitizations. Nomura Securities, known in the U.K. for doing private equity LBOs, Credit Suisse First Boston and the Royal Bank of Scotland are all looking to get these types of deals off the ground as a way to offer more acquisition financing options as well establish a foothold in Spain's fledgling ABS market. The first deals still may be a ways off, because while whole business securitizations are relatively common in the U.K., none have been done in Spain. "The legal structures [for whole business deals] in Spain haven't been tested yet. You need to get a client willing to pay for the process," says Oscar Sanz-Paris, an ABS banker at CSFB in London responsible for the Iberian Peninsula. "Originators are definitely interested," he adds.

Beltran Paredes, head of leveraged finance at RBS in Madrid, says LBO deals are an area on which the firm will focus. He says RBS intends to become a partner to private equity firms to support them with acquisition finance. Sanz-Paris adds that there are plenty of candidates for these types of deals, but companies with strong balance sheets, long track records and industry dominance will be ideal. An ABS official at Nomura in London says the firm is looking at Spain for LBO deals, but declined to elaborate.

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