News Digest: Global banks slice-up $80 billion M&A debt
September 28, 2022
Global banks are trying smarter ways to find buyers for their $80 billion worth of M&A financing debt. Some companies are cutting the debt up into smaller tranches to make them lucrative for a broader investor pool, while others are using Euro debt into the financing packages.
Several of these M&A financing packages came into existence some months ago when stocks were near their all-time highs. Banks are now adapting to rising rates and falling asset values that is resulting in investor risk appetites touching low points and money managers unable to shrug off bad bets elsewhere.
Several deals have seen underwriters alter the capital structure or terms to maximize liquidity. They have also sought to tighten terms upfront as a means to address likely investor areas of focus on the docs, says a partner at Allen & Overy.