Adevinta Shows How Far Private Lenders Will Go to Win Deals
- Direct lenders are cutting prices in order to grab business
- ‘Private credit has come in tighter,’ says Apax’s Mirica
Other prominent lenders working on Adevinta include Sixth Street Partners, HPS Investment Partners, Intermediate Capital Group and Blackstone Inc.
Photographer: Luke Sharrett/BloombergThis article is for subscribers only.
A race to provide financing for the buyout of classifieds company Adevinta ASA shows that direct lenders are willing to slash their terms in order to win deals, even in a volatile market.
Pricing for direct loans has largely been between 650 and 675 basis points over the Euribor benchmark for the last two years. For Adevinta, where Apollo Global Management and Goldman Sachs Asset Management are involved in the plans, direct lenders are offering 575 points, with an original issue discount at 98 cents on the euro.