Opportunistic and aggressive loans financing dividend payments to private equity firms, such as a US$3.2bn loan for office supply company staples, are back on the agenda as sponsors exploit excess investor demand while dealflow remains thin. The deal will finance a US$1bn dividend payment to Staples' sponsors, which are led by private equity firm Sycamore Partners, and will test the strength of the US loan market's recovery. Retail loan funds saw a record outflow of more than US$10bn in a volatile December, but secondary prices have rallied to 97.11 from a low of 94.57 on December 28, when fears of a global slowdown pulled prices lower. "I'm not saying you just throw anything out there and it sells itself," said a head of leveraged finance. "There is differentiation ... but we're essentially back to normal."
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