Reuters – PE Eyes U.S. Loan Market for CeramTec Buyout

Bankers are looking towards the U.S. debt market to raise 900 million euros ($1.18 billion) for a buyout of industrial ceramics firm CeramTec, spurning Europe where risky debt is in shorter supply, bankers said on Thursday. U.S. specialty chemicals company Rockwood Holdings Inc has put Germany-based CeramTec up for sale in an auction process run by Lazard. CeramTec has a price tag of around 1.4 billion euros, bankers said. The U.S. market for riskier debt is more liquid than Europe's, making it easier to raise large amounts at competitive rates. A U.S. financing can be "covenant-lite", a structure that offers little or no protection for lenders via financial tests.

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