Buyout Firms Ramp Up Debt Deals to Pay Dividends

Companies are launching a number of debt deals designed to pay out a dividend to their private equity owners, at a time when buyout firms are under pressure to return money to clients.

Clayton Dubilier & Rice-backed Wolseley Group on Tuesday announced a new £350 million ($462 million) senior secured bond sale, with the proceeds to be used to finance a distribution to shareholders and refinance existing debt for the British plumbing and heating company, according to a person familiar with the matter.