Banks face lower fees on LBO loans

摘要

Arranging banks are facing a fresh assault on underwriting fees on buyout loans, as private equity firms are demanding lower fees if their limited partners join deals, or for introducing other investors. Private equity firms have been eating into banks' underwriting fees for the past two years, by initially asking for discounts in return for providing pre-placed second-lien loans, and more recently by asking for lower fees if their debt funds join deals.