Deals
Private Equity Wins as Banks’ Leveraged Buyout Fears Dwindle
- Leverage in buyout deals rises after regulators ease up
- ‘It’s an issuer’s market,’ a Covenant Review analyst says
CalPERS CIO Sees Private Equity as 'Essential' Asset Class
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Buyout titans are benefiting as banks get less fearful about leveraged buyouts.
When Leonard Green & Partners recently decided to buy a majority stake in SRS Distribution Inc., banks led by Bank of America Corp. and Barclays Plc sought loans and bonds to help finance the $3.6 billion buyout. Investors have so far been willing to increase debt for the building supply company to more than seven times a measure of earnings, a level that just a few years ago would have raised regulators’ eyebrows.