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Lenders are preparing a loan of about €1 billion to fund the sale of Axel Springer SE's real estate ads unit Aviv Group. KKR Capital Markets and Deutsche Bank AG are leading the process as part of a plan to split up media conglomerate Axel Springer. The financing is being shown to select investors before being launched for general syndication, with the overall split of Axel Springer valued at €13.5 billion. [Extracted from the article]

Bankers are vying to provide up to £3 billion in debt financing for the potential sale of Reckitt Benckiser Group Plc's homecare assets. The debt will be denominated in euros and dollars to tap into the leveraged loan and high yield bond markets. The sale, which includes brands like Airwick and Cillit Bang, is part of Reckitt's strategy to focus on core products like Strepsils and Dettol. Private equity firms like Advent International and Apollo Global Management have shown interest in the sale. The leveraged buyout financing market is seeing a resurgence, with banks lining up funding for various acquisitions. [Extracted from the article]

Clarios International Inc., a car battery maker, is set to pay a $4.5 billion dividend to its private equity owners through a loan deal, one of the largest payouts of its kind. The company will raise $2.5 billion through a dollar-denominated term loan and an $800 million-equivalent euro term loan, with plans to further raise $1.2 billion through high-yield bonds. This dividend recapitalization strategy is common in private equity to meet return targets when other exit options are not feasible. Despite concerns about increased debt levels, investors are expected to show interest in the deal due to favorable market conditions. [Extracted from the article]

The article discusses how a prolonged lack of M&A activity has shifted power to private equity firms in deal negotiations, leaving banks at a disadvantage. Private equity firms are leveraging their position to demand favorable terms from lenders, who are taking on riskier deals to stay involved. The imbalance in the market has led to creative financing solutions and increased pressure on banks to agree to terms quickly. Despite the challenges, some bankers are hopeful that the M&A market will improve, especially with potential changes in business policies under the new US administration. [Extracted from the article]

Bankers are working on raising €9 billion in debt financing for Unilever Plc's ice cream business, in case it opts for a sale to private equity firms instead of a public listing. While Unilever initially considered a sale, it now leans towards a spin-off, with an IPO planned for the fourth quarter of next year. Bankers are preparing leveraged loans and high-yield bonds denominated in euros, dollars, and sterling to support potential buyouts, following a slowdown in M&A activity in 2024. This move is part of Unilever's strategy to streamline its portfolio after rejecting a takeover bid from Kraft Heinz Co. in 2017. [Extracted from the article]

Banks are missing out on approximately €220 million in underwriting fees as Brookfield Asset Management withdraws its bid to take Grifols private. The collapse of the deal, due to valuation disagreements, means that the banks involved will not be appointed and will not receive their expected fees. This setback comes after a period of optimism in Europe's leveraged finance market, with the Grifols deal being the largest debt package of the year. [Extracted from the article]

Siemens AG has secured a $10.5 billion bridge loan to acquire software maker Altair Engineering Inc., with the loan initially underwritten by Goldman Sachs Group Inc. The acquisition will pay Altair investors $113 a share, and the transaction is expected to close in the second half of the following year. This loan is one of the largest commitments made by Goldman Sachs in recent years, and it comes at a time when the investment-grade market has seen a decrease in the number of transactions. [Extracted from the article]

KKR & Co., the Canada Pension Plan Investment Board, and German billionaire Mathias Döpfner are seeking to raise around €4 billion in debt to finance the separation of Axel Springer's classified ads businesses from its news operations. The financing plan involves leveraging the loan market and private credit funds, taking advantage of the current interest in leveraged buyouts. The deal values Axel Springer at €13.5 billion, with the classifieds business accounting for over €10 billion of that amount, while media assets like Politico and Business Insider will remain within Axel Springer. [Extracted from the article]

Citigroup Inc and Banco Santander SA are preparing a debt package of up to €4 billion to support the potential sale of Spanish waste-management company Urbaser SA. The financing package will likely include funded debt split between term loans and high-yield bonds, as well as unfunded debt consisting of guarantees and revolving credit facilities. Infrastructure bidders are among the potential buyers of Urbaser, which operates in about 15 countries and serves around 70 million people worldwide. [Extracted from the article]

Citigroup Inc and Banco Santander SA are preparing a debt package of up to €4 billion to support the potential sale of Spanish waste-management company Urbaser SA. The financing package will likely include funded debt split between term loans and high-yield bonds, as well as unfunded debt like guarantees and revolving credit facilities. Infrastructure bidders are among the potential buyers, and final bids are expected in early 2025. Europe's leveraged finance market is showing signs of revival, with Urbaser being the latest buyout opportunity in the region. [Extracted from the article]

Packaging company Kloeckner Pentaplast, backed by Strategic Value Partners, is seeking to raise €2 billion to refinance its debt. The company aims to secure €1.5 billion in senior debt and around €500 million in junior debt to reduce leverage. Kloeckner has faced challenges due to weaker consumer demand and raw material price volatility, prompting the need for refinancing. Strategic Value Partners acquired Kloeckner in 2012 and injected funds last year to improve its financial position. [Extracted from the article]

Banks are preparing to offer a debt package of approximately €11 billion to support the acquisition of Spanish pharmaceutical company Grifols SA by Brookfield Asset Management. The final package will include leveraged loans, high yield bonds, and an undrawn revolving credit facility in euros and dollars. The deal, expected to be one of the largest takeovers of a publicly traded European company, has faced delays due to the number of proposals and due diligence process. Grifols, known for producing blood-plasma medicines, has faced challenges this year following accusations of accounting manipulation, leading to share and bond price volatility. [Extracted from the article]

Banks are preparing to offer a debt package of approximately €11 billion ($11.6 billion) to support the privatization of Spanish pharmaceutical company Grifols SA by Brookfield Asset Management. The final debt package will consist of leveraged loans, high yield bonds, and an undrawn revolving credit facility in euros and dollars. The deal, if successful, will be one of the largest takeovers of a publicly traded European company since 2022 and has attracted significant interest from banks due to a recent lack of M&A financings. Grifols, a major player in the European and US debt markets, has faced challenges this year following accusations of financial manipulation, leading to a downgrade in its credit rating and increased scrutiny of its leverage levels. [Extracted from the article]

Goldman Sachs Group Inc. has hired Kartik Subramanian-Nair from Barclays Plc to join their capital markets unit in London as a managing director. This move comes as banks anticipate a resurgence in leveraged-finance markets, with record leveraged loan sales in the US and an increase in overall bond issuance. Competition between banks and private credit firms to provide loans remains high, reflecting the evolving landscape of the financial industry. [Extracted from the article]

The article discusses Clayton Dubilier & Rice's latest buyout deal with drugmaker Sanofi to acquire half of its consumer arm, Opella, for €16 billion. Despite facing challenges with a previous buyout, CD&R attracted 22 banks to underwrite the deal, showcasing Wall Street's renewed interest in leveraged finance. The deal includes unique terms like back leverage, demonstrating banks' willingness to adapt to secure a role in significant transactions. The article highlights the competitive landscape of the leveraged-finance market and the evolving strategies employed by buyout firms and banks to navigate complex deals. [Extracted from the article]

Goldman Sachs Group Inc and Citigroup Inc. are part of a group of 22 banks providing Clayton Dubilier & Rice with financing for a stake in Sanofi SA's consumer health division. The lenders are expected to offer €8.65 billion in euro- and dollar-denominated loan and bond financing. This deal is significant in the finance world, as leveraged buyouts are highly profitable, and the involvement of multiple banks reflects the current market conditions. The banks involved in the deal are receiving lower fees due to the deal being split among a large number of institutions. [Extracted from the article]

Investment banks are returning to leveraged buyouts, a highly profitable area of finance, after taking losses on risky merger and acquisition loans due to a global increase in interest rates. Traditional lenders and private credit managers are offering more than $15 billion of debt on a single junk-rated deal, a 50% increase from last year. The lower borrowing costs resulting from the first Federal Reserve interest rate cut in four years are allowing private equity firms to increase their debt capacity and become more competitive in bidding for targets. [Extracted from the article]

Clayton Dubilier & Rice (CD&R) had initially requested banks to commit over €1 billion of debt to fund part of its bid for Sanofi's consumer-health division, but this debt facility was not included in the final proposal. CD&R is competing with French rival PAI Partners for the €15 billion unit, and Sanofi is expected to make a decision soon. Back leverage, a type of loan used by buyout shops to finance equity investments, was not included in CD&R's final bid. [Extracted from the article]

Banks and lenders are preparing to provide over €10 billion ($11.1 billion) in debt to support the buyout of Sanofi SA's consumer health division. A group of banks has already committed to providing €7.5 billion to €7.8 billion of senior debt, along with a revolving credit facility of around €1.2 billion. Private credit lenders are also planning to offer €1.5 billion to €2 billion of junior debt. New York-based buyout firm Clayton Dubilier & Rice and French rival PAI Partners are competing for the acquisition, with bids due this month. The debt packages for both firms include a mix of euro and dollar-denominated loans and bonds. Banks are eager to fund leveraged buyouts, but there are risks involved, as seen in previous experiences. The total leverage provided by banks is expected to be six times the unit's earnings, rising to 7.5 times with the private credit element. CD&R is also in discussions with banks for back leverage to fund part of the equity check. [Extracted from the article]

The private credit asset class is experiencing a growing divide between successful firms and those struggling to raise funds. Intermediate Capital Group and Ares Management have achieved record-breaking fundraising, while Fidelity International and Polen Capital have halted their European direct lending activities. Industry giants like Blackstone, Apollo, and Goldman Sachs are expanding their franchises to offer comprehensive debt financing solutions. Investors are becoming more discerning, favoring managers with good track records and the ability to navigate credit cycles. The private credit industry is transforming corporate finance, with a small elite group of asset managers playing a critical role. [Extracted from the article]

Lemssouguer started his credit-focused hedge fund last year, naming it Arini after the parrots he breeds in his spare time. (Bloomberg) -- As a junk bond trader at Credit Suisse Group AG, Hamza Lemssouguer reeled in huge profits spotting stress in credit markets. [Extracted from the article]

Banks are working on debt financings for potential buyers of All4Labels totaling around €875 million, equating to about five times the company's approximate earnings, according to people with knowledge of the matter. (Bloomberg) -- Triton is exploring a potential sale of All4Labels Global Packaging Group that may value the German label manufacturer at €2 billion ($2.1 billion) or more, people with knowledge of the matter said. Triton Is Said to Explore €2 Billion Sale of All4Labels Global. [Extracted from the article]

Kristin Roth DeClark, global head of technology investment banking at Barclays Plc, told Bloomberg Television earlier this month that it's fun to be an investment banker again because deals really need to be sold to investors. Financing markets are beginning to open up for large deals, while buyers and sellers are getting more realistic on pricing. (Bloomberg) -- Dealmakers are sweating the small stuff again as they fight to claw back lost ground in mergers and acquisitions. [Extracted from the article]

(Bloomberg) -- Bankers eager to finance a buyout of German drugmaker Stada Arzneimittel AG are considering a debt package as high as €6 billion ($6.3 billion), pegging the coveted deal as a bellweather for the market. Bankers Prepare for Stada Sale With €6 Billion Debt Package In the case of Worldpay and Infra's debt packages, both were met with strong investor demand and saw the size of the debt offerings increase and pricing tighten. [Extracted from the article]

(Bloomberg) -- Bankers and private credit funds are working on a financing deal of around €1 billion ($1.05 billion) to back a potential buyout of French insurance broker Kereis as the sale process kicks off, according to people familiar with the matter. The firm's private equity owner, Bridgepoint Group Plc, has put the insurer, formerly known as CEP, up for sale with JPMorgan Chase & Co. and Rothschild & Co. advising. Lenders Work on €1 Billion Financing for Kereis as Sale Starts. [Extracted from the article]

Goldman Sachs Group Inc. is advising Blackstone and Permira, while JPMorgan Chase & Co. and Citigroup Inc. are advising Adevinta, some of the people familiar with matter said. (Bloomberg) -- Investment banks and direct-lending funds are competing to provide as much as €4 billion ($4.2 billion) of debt to finance a potential take-private of European classifieds company Adevinta ASA, people with knowledge of the situation said. [Extracted from the article]

(Bloomberg) -- Attractive pricing on a full range of leveraged finance deals is giving bankers the confidence to underwrite more transactions. For now, however, leveraged finance bankers and investors remain optimistic, with the return of the $1.3 trillion market for collateralized loan obligations, which repackages leveraged loans into bonds of varying risk and size, also helping sentiment. [Extracted from the article]

(Bloomberg) -- Deal-starved bankers are jostling to get a piece of the financing action on British grocer WM Morrison's potential £2.5 billion ($3.1 billion) sale of most of its gas stations. But they say debt financiers have been hitting the phones to offer their services to Clayton, Dubilier & Rice, the private equity firm that owns both Morrisons and MFG. [Extracted from the article]

(Bloomberg) -- Investors are getting a preview of the $9.4 billion jumbo financing package behind the buyout of Worldpay Inc. as banks including JPMorgan Chase & Co. and Goldman Sachs Group Inc. drum up appetite before the official sale of the debt. JPMorgan is targeting dollar investors with around $6.4 billion of the Worldpay debt, while Goldman is marketing a portion equivalent to about $2 billion for euro investors, the people said. [Extracted from the article]

(Bloomberg) -- Tele Columbus AG is finalizing a refinancing proposal envisaging an equity injection from its shareholders, with the help of new adviser Goldman Sachs Group Inc. The size of the check is being decided between Morgan Stanley Infrastructure Partners and United Internet AG - which own Tele Columbus via vehicle Kublai GmbH - and will need to be approved by creditors too, said people familiar with the matter, who asked not to be identified because the talks are private. [Extracted from the article]

Buyout firms are increasingly using expensive subordinated debt - also known as junior financing - to help fill funding gaps and get deals done. Traditional lenders have been lowering the amount of leverage - the debt a company has versus its earnings - that they're prepared to provide for buyouts. (Bloomberg) -- Private equity firms are turning to a new weapon to help them get their buyouts over the line: less-than-conventional funding. [Extracted from the article]

(Bloomberg) -- Triton's plans to sell Pharmanovia are stalling over valuation, people familiar with knowledge of the matter said, in another sign that private equity firms are struggling to get deals over the line. Triton's €2 Billion Sale of Pharmanovia Is Stalling Triton has been in discussions about selling Pharmanovia to private equity peer Permira, which already owns a European specialty pharma company called Neuraxpharm, but talks have faltered on price, they said. [Extracted from the article]

Hedge funds, a group of investors once deemed too opportunistic, are starting to crop up on "white lists" of approved lenders that private equity firms have used to control who they borrow from since the financial crisis. (Bloomberg) -- In the private market where the world's largest leveraged buyouts are funded, borrowers get to decide who buys their debt. [Extracted from the article]

HPS Beats Banks as €1.5 Billion Deal Goes to Private Credit Buyout firms typically run a dual-track process and weigh competing bids from a wide range of private credit and traditional bank lending. (Bloomberg) -- Private credit firm HPS Investment Partners will provide a €1.5 billion ($1.65 billion) loan package to help fund the buyout of Constantia Flexibles GmbH, dealing a setback to banks that had also been competing for the financing. [Extracted from the article]

Banks are also more confident in doing deals because leveraged loan prices in the secondary market have been rising and the collateralized loan obligation market - the biggest buyer of loans - is showing signs of life. (Bloomberg) -- After a year dominated by direct lenders, investment banks are now winning some bigger deals in the buyout financing market. [Extracted from the article]

(Bloomberg) -- After a year dominated by direct lenders, investment banks are now winning some bigger deals in the buyout financing market. Banks are also more confident in doing deals because leveraged loan prices in the secondary market have been rising and the collateralized loan obligation market - the biggest buyer of loans - is showing signs of life. [Extracted from the article]

(Bloomberg) -- A group of banks led by JPMorgan Chase & Co. and Goldman Sachs Group Inc. are lining up around $9.4 billion of debt to back GTCR's purchase of a majority stake in Worldpay Inc., in what would be the largest buyout financing in over a year. Citigroup Inc., Wells Fargo & Co., Deutsche Bank AG and UBS Group AG are also providing debt financing to support the transaction. [Extracted from the article]

Traditionally, buyout firms would load up the companies they acquire with debt in order to maximize returns, with leverage of six or more times earnings typical in deals before Russia's invasion of Ukraine rocked global financial markets. (Bloomberg) -- Private equity firms are having to reduce the leverage in buyouts to get deals done, as the cost of debt has spiraled and banks remain cautious about how much they'll lend. The change comes after a series of aggressive interest rate hikes more than doubled debt servicing costs for buyout firms since the start of last year. [Extracted from the article]

Banks, Private Credit Firms Compete for €1.5 Billion Applus Debt Deal The debt packages under consideration vary between the different banks and direct lenders but are mainly between €1 billion to €1.5 billion of senior debt, the people said, equating to 3 to 4.5 times leverage based on Applus' approximate Ebitda of €325 million. (Bloomberg) -- Investment banks and direct lenders are working on debt packages of up to €1.5 billion ($1.6 billion) to back a potential take-private of Spain's Applus Services SA, according to people familiar with the matter. [Extracted from the article]

(Bloomberg) -- John Aylward's credit hedge fund Sona has hired Barclays PLC's co-head of global leveraged finance syndicate Stephen Smith, in one of the most high-profile moves in leveraged finance this year. Read more: Aylward's Credit Hedge Fund Gains 25% as Market Trips Up Peers Europe-focused Sona Credit Master fund has continued to grow despite the difficult macro conditions, with a 10% increase in 2023 year-to-date, which comes after a surge of 25% in 2022, according to people familiar with the matter. [Extracted from the article]

(Bloomberg) -- Private credit firms are encroaching on the business of investment banks even further - by increasing their share of lending for take-private deals. Direct lenders' involvement in take-private deals is also a reflection of a wider trend in M&A. While deal activity globally is foundering amid disparate price expectations and difficult financing markets, public-to-private deals are becoming more attractive because they are easier to value. [Extracted from the article]

"PE firms have set a relatively high bar to saying "yes" to a deal, walking away from transactions unless it's the right deal and it's at the right valuation level." (Bloomberg) -- Private equity firms hunting for acquisitions with their $1.5 trillion of unspent capital are struggling to seal deals as they hit roadblocks from heady price demands to difficult financing markets. [Extracted from the article]

(Bloomberg) -- Private equity firms hunting for acquisitions with their $1.5 trillion of unspent capital are struggling to seal deals as they hit roadblocks from heady price demands to difficult financing markets. "PE firms have set a relatively high bar to saying "yes" to a deal, walking away from transactions unless it's the right deal and it's at the right valuation level.". [Extracted from the article]

Triton invested in Pharmanovia in 2019 and the company has since grown through bolt-on acquisitions. (Bloomberg) -- Triton has kicked off the sale of UK specialty pharma business Pharmanovia, a deal that may test the appetite for buyout financing in Europe, people with knowledge of the matter said. [Extracted from the article]

The capital-market desks can also leverage their relationships with investors and future access to deals in order to entice them into current financings, a particularly useful tool if a deal is struggling. (Bloomberg) -- Private equity firm CVC Capital Partners is ramping up its capital markets business to start underwriting debt used to fund buyouts. [Extracted from the article]

(Bloomberg) -- Banks are readying a roughly $5.5 billion debt sale to support Apollo Global Management Inc.'s acquisition of Univar Solutions Inc., the latest test of investor appetite for risky loans and bonds that back buyouts. A group of banks led by JPMorgan underwrote a debt package comprised of a $2.1 billion term loan, a $2 billion senior secured bridge loan and a $1.4 billion asset-based revolving credit facility earlier this year. [Extracted from the article]

This means investors can put in and withdraw cash on an ongoing basis, unlike more mainstream private debt funds where investors can have their capital locked up for as long as 10 years. (Bloomberg) -- KKR & Co. is seeking to raise a multi-billion-dollar direct lending fund in Europe that allows investors the option of depositing and withdrawing their cash more frequently than typical closed-ended vehicles. [Extracted from the article]

(Bloomberg) -- Private equity firm CVC Capital Partners is ramping up its capital markets business to start underwriting debt used to fund buyouts. On syndicated transactions, the capital markets desks can provide a portion of the debt alongside banks and receive an underwriting fee of around 2%. [Extracted from the article]