Junk Debt Success Makes Banks More Eager to Lend for Buyouts
- Bankers more confident after LBO success across junk spectrum
- Worldpay, Syneos deals saw pricing tighten in recent deals
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Attractive pricing on a full range of leveraged finance deals is giving bankers the confidence to underwrite more transactions.
A $5.7 billion-equivalent loan that helped to fund the buyout of Worldpay Inc. and a financing for the private equity buyout of Syneos Health Inc. both saw pricing tighten twice during the deal processes — a sign of strong investor demand. The sale of debt backing the buyout of Brazilian restaurant chain Fogo de Chão Inc. also went well, with pricing tightening. Crucially, the deals span across junk ratings, offering bankers key data points.