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A slow destruction of misallocated investment is more likely than a sudden stop
LBO financing includes $5.75bn term loan to be priced early next week
Investors eye 2028, 2031, 2032 as big years for loan maturities
Even leveraged deals still being underwritten, though banks are selective
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In the middle of a quiet August, thoughts among leveraged finance bankers have naturally turned to September, traditionally one of the busiest months of the year. But market participants are unsure how many transactions still need to be done, following the surge of supply that hit the market in July.
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UK self-storage company Big Yellow Group has signed a £145m refinancing loan with Lloyds and HSBC, that will pay down a £190m loan made in 2012.
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Faster SpA, the Italian producer of couplings for the hydraulic industry, has signed a €98m loan to back its buyout by Capvis Equity Partners.
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Indian major Reliance Industries’ telecom arm Reliance Jio Infocomm could be looking to price its $1.5bn dual tranche financing at all-ins below 175bp, said a banker who received the invitation but is not considering participating.
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A total of 18 banks have piled into Taiwan Cement Corp’s $1bn fundraising, with syndication now closed. But despite the fact that the deal is close to two times covered, the borrower is unlikely to increase the final size.
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French investment firm Wendel will sell another subsidiary of Materis, the French admixture producer for concrete and cement, in a deal valued at €290m.