The percentage of LBO deals with leverage levels greater than six times is returning to 2007 levels. So far in 2014, LPC tracked 40 LBO (where deal details were available) deals or 55% of the total with total leverage greater than the regulators’ benchmark 6 times debt to EBITDA. … Subscribe to Read MoreAlready a member? Log
After a record-breaking 2Q14, there was a sharp pull-back in the HY bond market in July. In fact, a number of deals remain on the calendar because they didn’t make it into the market the last week of July due to adverse market conditions…. Subscribe to Read MoreAlready a member? Log in here...
The Fundraising Trail is OPEN The private equity fundraising trail has been wide open of late, with the last four quarters seeing at least 70 funds close each quarter. Over the last 18 months, U.S. PE funds have picked up $291 billion across 418 different funds. 2014 won’t be quite as big as 2013,… Subscribe
The legal machinations of the CDS market are probably not the main concern of Portugal’s national government and its biggest bank. But the travails of Banco Espirito Santo (BES) are certainly capturing the attention of credit investors, not least because of its potential significance in a changing regulatory environment. BES has been under pressure since…
A company’s credit rating gets placed on review for downgrade, and its CDS spreads stage their biggest one-day rally on record? This appears like a contrarian market reaction, regardless of one’s views on the rating agencies and their performance in recent times…. Subscribe to Read MoreAlready a member? Log in here...
Not that long ago, it would seem strange to see news of a private equity firm buying a venture-backed company; in today’s private company market, though, it is becoming a weekly, and almost daily, occurrence. In 2013, there were 102 of these deals. Based on the first half of 2014, we expect the year to…
The middle market is quite a diverse market place and yields vary based on lender type and EBITDA size. In 2Q14, moving down market to lend TLBs to smaller private middle market issuers resulted in a nice 70bps premium for first lien deals over rated, public middle market institutional deals. However, while there is a premium…
Cumulative CLO assets under management (AUM) increased to $335 billion in July with CLO AUM reaching $65 billion for CLOs with 2014 vintage. This figure is quickly catching up to the $81 billion in assets under management for 2013 vintage… Subscribe to Read MoreAlready a member? Log in here...
European banks are no strangers to unpleasant shocks. The latest came from Portugal, where Banco Espirito Santo (BES) came under pressure following news that the Espirito Santo holding company – BES’s largest shareholder – had run into financial difficulties…. Subscribe to Read MoreAlready a member? Log in here...
Despite all the talk of a “playground” in Europe for private equity buyers, we aren’t seeing the kinds of deal flow we might expect if we only read the headlines. We found a decline in buyout activity in the second quarter, which saw 261 control investments versus 332 in Q1. Second quarter deal activity didn’t…