Global volatility may see tougher terms on new European M&A bridge loans and banks may have to wait longer than expected for bridge loans to be repaid, as borrowers wait for more favourable conditions to issue bonds or raise equity, bankers said. Capital market disruption has already claimed one prospective debt-financed deal. International oilfield services firm schlumberger decided to finance the majority of its US$14.8bn acquisition of cameron international with stock instead of debt, citing volatility in the financial markets. Turmoil in the broader markets could also see more conservative structures on new bridge loans, along with higher initial pricing and increased duration fees, which could affect new deals such as zurich insurance's proposed £5.6bn acquisition of British rival rsa, which was announced last week.
展开▼
