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Global banks slice and dice $80 bn in M&A debt that no one wants

In the case of the private-equity buyout of Citrix Systems, they're cutting the debt into smaller pieces to attract a wider pool of investors

Banks
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Banks are also looking at adding a $500-million-equivalent leveraged loan denominated in euros. Depending on demand for the loans they’re selling, bankers may also be able to decrease the amount of debt they’ll need to hold to $2.5 billion or even less.

Bloomberg
Global banks stuck with $80 billion in unappealing M&A financing debt are trying new tactics to find buyers. 

In the case of the private-equity buyout of Citrix Systems, they’re cutting the debt into smaller pieces to attract a wider pool of investors. Euro debt is being added to some financing packages, as in the case of ETC Group’s takeover. 

The banks are adapting to rising rates and falling asset values, where investors’ risk appetite has seemingly vanished and money managers are bruised from bad bets elsewhere. Many of these M&A financing packages were put together months ago, when stocks were near all-time
Topics : Banks M&A

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First Published: Aug 23 2022 | 10:52 PM IST

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