Direct Lenders Muscle Into High-Yield Territory as Funds Expand
- Non-Standard Finance mulled bond before unitranche: sources
- Faster execution, higher leverage may favor private debt deals
A participant fires a suppressed Heckler & Koch MP5 submachine gun during the Fall 2015 Knob Creek Machine Gun Shoot in West Point, Kentucky, U.S., on Friday, Oct. 9, 2015. The Machine Gun Shoot is a three day bi-annual event that attracts gun dealers, collectors, and enthusiasts from all across America in what is considered one of the largest gun shows in the world dealing specifically with high caliber weaponry.
Photographer: Luke Sharrett/BloombergDirect lending funds in Europe are encroaching into the high-yield bond market as they target increasingly bigger financing deals, in yet another sign of the expansion of private debt funds in the region.
Heckler and Koch Inc., Non-Standard Finance Plc and Zenith Group Holdings Ltd. are among borrowers to have recently considered a bond sale but instead met their financing needs via a direct lender, according to sources familiar with the matter. By sidestepping the often lengthier and uncertain process of a public syndication, these companies secured access to guaranteed funds more quickly -- albeit with a more expensive debt solution.