Australia set for M&A Loan boom

摘要

Australia's loan market is witnessing a resurgence in deal flow, with almost A$9bn (US$7.01bn) of event-driven financings closed or launched since April as the national economy gradually reopens and business activity recovers from the depths of the global pandemic. Strong liquidity from lenders hungry for assets is giving corporates and financial sponsors confidence to embark on big mergers and acquisitions, allowing some to strike competitive financing terms and pricing. "The acquisition and leveraged loan market has seen a full recovery to pre-Covid levels and arguably for select industries has become more aggressive," said Peter Graf, head of leveraged finance at Credit Suisse Australia in Sydney. "We have seen the final step in the reopening of the market this year with a resurgence of acquisitions and debt packages in excess of A$lbn each." Three deals were launched last week - a A$2.15bn-equivalent financing backing Macquarie Infrastructure & Real Assets and Aware Super's proposed takeover of telecommunications company VOCUS GROUP, a A$1.9bn loan tied to the demerger of supermarket chain WOOLWORTHS GROUP'S drinks and hospitality unit ENDEAVOUR CROUP, and a A$2.246bn loan backing ESR Real Estate's acquisition of Blackstone's MILESTONE LOGISTICS portfolio.