Deals
Direct Lenders Demand Better Terms as Usual LBO Funding Falters
- European deals see borrowers agree to investor protections
- US private credit battle keeps some lenders from getting tough
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Direct lenders in Europe are seizing on disruptions in public markets to demand better terms from borrowers, a tactic some US private credit funds have occasionally pursued.
The latest show of force is set to come from lenders weighing up supporting Goldman Sachs Group Inc.’s private equity arm in the financing of around 650 million euros ($683 million) of senior loans for their acquisition of a 65% stake in Amsterdam-based pharmaceutical firm Norgine BV. Jefferies Financial Group and KKR Capital Markets joined Goldman Sachs in the underwriting, according to people familiar with the matter who asked not to be identified because the talks aren’t public.