Bankers are devising groundbreaking financing structures to support European leveraged buyouts in their quest to develop the subordinated debt markets. Joanna Hickey reports.
The most notable recent development in Europe’s leveraged buy-out (LBO) loan – or senior debt – market is the inflation of deal size. Transactions are ballooning to unprecedented levels, culminating in Europe’s largest ever buyout, the €5.65bn LBO of Seat in July. This is being driven by high liquidity for leveraged loans, which represent 70% of the overall debt in an LBO financing.
