Summary List Placement

Debt-fuelled buyouts, like regular catnip for dealmakers, are not just back in vogue, they’ve returned in size.

These big-ticket transactions generate substantial fees for bankers, while investors are champing at the bit to put money down on new borrowers that typically offer higher returns than those simply refinancing or repricing their existing debt.

One of the biggest acquisitions in recent months – Stone Point Capital and Insight Partners’ roughly $6 billion buyout of property technology company CoreLogic – is being supported with some $4.75 billion in leveraged loans, and it’s in the market this week, according to sources familiar. Apollo’s $5 billion buyout of arts and crafts retailer Michaels, meanwhile, is being funded with $1.8 billion in loans and $2.3 billion in high-yield bonds, and is scheduled to conclude by Thursday, sources said.

JP Morgan is leading the deal for CoreLogic, Credit Suisse is leading the loans for Michaels, and Barclays is leading the bond portion of the deal for the retailer, sources said.

The leveraged loan market, a regular playground for private equity shops’ hefty acquisitions, is expected to bear the brunt of this buyout volume over the high-yield bond market. Investors are turning their attention to floating-rate loan …read more

Source:: Businessinsider – Finance


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