TITLE

Europe finds its own way in the second lien market

AUTHOR(S)
Griffiths, Catrin
PUB. DATE
March 2005
SOURCE
Lawyer;3/14/2005, Vol. 19 Issue 10, p11
SOURCE TYPE
Trade Publication
DOC. TYPE
Article
ABSTRACT
This article focuses on recent developments in the second lien market of Europe and related laws. According to the author, while the European market has imported the concept of second lien financing from the U.S., it is not going to follow the U.S. model. The problem, suggestively, is that the dozen-odd deals with a second lien piece since Brenntag Inc. in December 2003 have not followed any particular pattern. The author comments that, with no single insolvency regime in Europe, and the existence of a healthy mezzanine market, second liens are unlikely to revolutionize the way leveraged deals are done. It is opined that what everyone agrees on is that second liens are part of a bigger trend of sponsors stretching the capital structure and hiking leverage multiples to record levels.
ACCESSION #
16507570

 

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