U.S. loan market readies 2019’s first jumbo buyout loan
The U.S. leveraged loan market is looking forward to its first jumbo buyout loan of 2019 after the US$13.2 billion acquisition of Johnson Controls International Plc’s power solutions business by Canadian private equity firm Brookfield Business Partners, Reuters reported. The deal has more debt and less equity than most of 2018’s buyout loans as private equity firms issue increasingly aggressive deals to take advantage of strong investor demand for floating-rate debt in a rising interest rate environment. JP Morgan is leading the dollar-denominated loan for the business, while Barclays will lead the euro-denominated loan, the banker said. Credit Suisse is leading the bond offering, which is expected to be issued in dollars.
16 November 2018•3 mins read
