The material on this site is for financial institutions, professional investors and their professional advisers. It is for information only. Please read our Terms & Conditions, Privacy Policy and Cookies before using this site. Please see our Subscription Terms and Conditions.


All material subject to strictly enforced copyright laws. © 2022 Euromoney, a part of the Euromoney Institutional Investor PLC.
BANKING

Reality hits mad merger pricing

    Headline: Reality hits mad merger pricing
Source: Euromoney
Date: July 2000
Author: Ben Beasley-Murray

Secondary loan market takes off

Last year's high-margin financing for Olivetti may have been the peak for fees and prices on the syndication of huge merger loans. But the mergers go on and spreads are getting less wild, more credit-sensitive. A secondary market is growing in Europe, and institutional investors are stepping in to fill a possible gap in bank liquidity. Ben Beasley-Murray reports

The past year has been a trail-blazing period for syndicated lending, with loans of unprecedented size coming to the market. Fees and margins have grown to match, turning a market that for years has been regarded purely as relationship driven into a valuable money-spinner. "The difference between today and two years ago," says Peter Gleysteen, global head of syndicated lending at Chase, "is that today the pricing baseline is in the money."

The market is seeing a little more reality after the excesses of 12 months ago when the uncertainty as to what was possible led to issues being priced over the odds. But with M&A activity and corporate restructuring continuing apace there is no danger of the market going into reverse.










You have reached premium content. Please log in to continue reading.

Read beyond the headlines with Euromoney

For over 50 years, our readers have looked to Euromoney to stay informed about the issues that matter in the international banking and financial markets. Find out more about our different levels of access below.

SUBSCRIBE ONLINE TODAY

Unlimited access to Euromoney.com and Asiamoney.com

Expert comment, long reads and in-depth analysis interviews with senior finance professionals

Access the results of our market-leading annual surveys across core financial services

Access the results of our annual awards, including the world-renowned Awards for Excellence

Your print copy of Euromoney magazine delivered monthly

£73.75 per month

Billed Annually

FREE 7 DAY TRIAL

Unlimited access to Euromoney.com and Asiamoney.com, including our top stories, long reads, expert analysis, and the results of our annual surveys and awards

Sign up to any of our newsletters, curated by our editors

LOGIN NOW

Already a user?

We use cookies to provide a personalized site experience.
By continuing to use & browse the site you agree to our Privacy Policy.
I agree