Lehman Launches Asset-Based Q Deal

  • 28 Oct 2001
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Lehman Brothers $100 million asset-based loan for Q Services, which was launched two weeks ago, by last Wednesday, had landed $25 million in commitments beyond the Lehman commitment. Further commitment levels could not be ascertained. Q Services helps maintain and enhance the production of oil and natural gas wells, an attractive sector right now, said a banker following the deal. In addition, the asset-based facility plays well to the market. Pricing is at LIBOR plus 4 1/2 % for the credit, consisting of an $80 million term loan and a $20 million revolver. The credit refinances existing debt. Calls to officials at Q Services were not returned.

Asset-based deals are the current lunch du jour, with the strong collateral packages easing concerns over credit risk. BNP Paribas, CIT Group and Heller Financial's deal for Exopack has also been well received. But one banker explained asset-based deals are more restrictive to the borrower than cash-flow deals. If the company can only borrow off the value of the assets, there is less leeway, he noted, less room for error perhaps, but harder to grow.

  • 28 Oct 2001

GlobalCapital European securitization league table

Rank Lead Manager/Arranger Total Volume $m No. of Deals Share % by Volume
1 Citi 3,691 11 20.69
2 Morgan Stanley 2,420 6 13.57
3 Goldman Sachs 2,096 5 11.75
4 BNP Paribas 1,686 6 9.45
5 Barclays 1,565 4 8.77

Bookrunners of Global Structured Finance

Rank Lead Manager Amount $m No of issues Share %
  • Last updated
  • Today
1 Citi 48,981.15 156 10.70%
2 JPMorgan 42,528.25 122 9.29%
3 Wells Fargo Securities 37,344.94 107 8.16%
4 Bank of America Merrill Lynch 34,673.03 110 7.57%
5 Credit Suisse 29,307.78 89 6.40%