Takeover-Fueled Junk Borrowing Hits Six-Year High in Europe
- M&A surge contributed to $100 billion bonds and loans
- Altice announces acquisition as low rates lure issuers
This article is for subscribers only.
Europe’s junk-rated companies are raising funds for mergers at the fastest pace in at least six years.
Buyout deals accounted for 61 percent of the almost 24 billion euros ($26.6 billion) of leveraged loans issued this year, the biggest proportion since the same period in 2009, according to S&P Capital IQ Leveraged Commentary & Data. Companies are also funding deals in the bond market, where sales are set for a record, according to Fitch Ratings.