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Marlborough Partners’ Q4 2018 Report

Marlborough Partners, the independent debt advisory firm, today published its report on the European leveraged finance market for Q4’18.

The report, analysing data from a number of sources, shows UK leveraged loan volumes totalled €2.3bn in Q4’18; a 56% decline from the same period in 2017. However overall 2018 volumes reached €23bn, which was up 21% on 2017, with high volumes observed in H1 2018 primarily driven by several large landmark deals closing in the first half of the year.

The DACH region had a healthy 2018, with full-year issuance rising to 105 deals compared to 93 deals for 2017. The share of LBOs increased to 69% of total issuances (vs. 56% in 2017) while recaps, refinancings and add-on financings have decreased relative to last year. Debt fund activity was also strong, with funds providing 39% of financing for the DACH market in the year (vs. 30% in 2017).

The Q4 2018 Report also looks at market evolution in the European fund financing space. Kieran Welsh, Director in Fund Finance with over 10 years experience, has joined the team to bring his extensive market knowledge to Marlborough’s clients. He observes: “Whilst leverage facilities have traditionally been provided to credit funds and secondary funds to increase investment capacity and enhance returns, we are seeing an increasing number of buyout funds requesting these facilities”.

Marlborough Partners – UK DACH Quarterly Snapshot – Q4 2018

For further information, please contact:

David Parker +44 (0)203 053 3601 djp@marlpar.com

About Marlborough Partners

Marlborough Partners, based in London, Frankfurt and Madrid, provides specialist, independent advice to private equity firms, portfolio companies and corporates, on sourcing and structuring debt and other non-equity finance. Since 2003, the Marlborough team has advised on 252 completed transactions – from the simple to the highly complex – comprising €60bn of primary market debt issuance, waivers and amendments and loan restructurings in eleven European jurisdictions. For further information, visit www.marlboroughpartners.com

Marlborough Partners – UK DACH Quarterly Snapshot – Q3 2018

Marlborough Partners – UK DACH Quarterly Snapshot – Q4 2018

Marlborough Partners’ Q3 2018 Report

Marlborough Partners, the independent debt advisory firm, today published its report on the European leveraged finance market for Q3’18.

The report, analysing data from a number of sources, shows UK leveraged loan volumes were €1.6bn in Q3’18; a 66% decline from the same period last year as issuance levels dropped from Q1 and Q2’18. The decrease in volumes for the quarter was primarily driven by several large landmark deals closing in the first half of 2018, with YTD volumes remaining strong at €20.9bn; 48% higher than the same period in 2017. 83% of total loan deal activity in Q3’18 was driven by M&A, continuing the trend of record levels since Q3’11.

A similar dynamic was seen in the DACH region, with the number of deals declining to 17 in Q3’18 from 30 in Q2’18, although YTD Q3’18 issuance was significantly above year-on-year with 74 deals vs. 57 deals. Debt funds were the dominant provider of financing for the DACH market in the quarter, with a share of 47% YTD Q3’18 (compared to 30% for full-year 2017).

The Q3 2018 Report also looks at the leveraged lending landscape in Spain’s middle market. Pedro Manen de Sola-Morales, Managing Director, said: “Private Equity activity in the Spanish mid-market has increased significantly in recent years, however the market has a number of important local nuances which need to be navigated when financing deals”.

Marlborough Partners – UK DACH Quarterly Snapshot – Q3 2018

For further information, please contact:

David Parker +44 (0)203 053 3601 djp@marlpar.com

About Marlborough Partners

Marlborough Partners, based in London, Frankfurt and Madrid, provides specialist, independent advice to private equity firms, portfolio companies and corporates, on sourcing and structuring debt and other non-equity finance.  Since 2003, the Marlborough team has advised on 248 completed transactions – from the simple to the highly complex – comprising €60bn of primary market debt issuance, waivers and amendments and loan restructurings in eleven European jurisdictions. For further information, visit www.marlboroughpartners.com

Marlborough moves into the European fund finance advisory space with strategic hire

Marlborough Partners, the leading independent pan European debt advisory firm, today announced that Kieran Welsh has joined the team as Director and Head of Fund Finance to lead Marlborough’s efforts in arranging fund finance facilities for General Partners (“GPs”) across both the European Private Equity and Direct Lending universe.

Kieran brings 10 years of fund finance experience, most recently as a Director in Lloyds Bank.

Kieran’s appointment will enable Marlborough to increase its debt advisory service offering to its core European private equity client base. Having advised Private Equity GPs on over 245 completed transactions since 2003, adding fund finance advisory is a logical step and has the added benefit of allowing the business to also advise the direct lending community on their fund level liquidity requirements. With increasing competition amongst lenders and increasing GP demand for more bespoke funding solutions, Marlborough will bring a focussed approach to sourcing liquidity for creative financings as well as the process discipline for which the firm is known. Kieran will be building on Marlborough’s completed deal track record in the fund finance space, the most recent of which was to advise on raising a group liquidity facility for one of our listed European clients.

Commenting on the appointment of Kieran Welsh, Marlborough Partner, Romain Cattet, says: “We are extremely pleased that Kieran has joined our team. His joining is a mark of the strength of our commitment to our European Private Equity clients and he will be invaluable in further developing our relationship with European Direct Lenders in the ever-evolving fund finance space.”

Kieran Welsh added: “I’ve long admired Marlborough’s success as Europe’s leading independent debt advisor and their hands-on approach to advisory. Combining this with the depth of their client relationships means I am delighted to lead the expansion of their business through providing creative and sophisticated fund finance solutions across Europe.”

For further information, please contact:

Romain Cattet +44 (0)7765 407724 rc@marlpar.com

About Marlborough Partners

Marlborough Partners, based in London, Frankfurt and Madrid, provides specialist, independent advice to private equity firms, portfolio companies, public companies and corporates, on sourcing and structuring debt and other non-equity finance. Since 2003, the Marlborough team has advised on 247 completed transactions – from the straightforward to the highly complex – comprising over €59.5 billion of primary market debt issuance, waivers and amendments and loan restructurings in eleven European jurisdictions. For further information, visit www.marlboroughpartners.com

Marlborough hires Pedro Manen de Sola-Morales to lead push into Iberian leveraged and corporate debt advisory market

Marlborough Partners, the leading independent pan European debt advisory firm, today announced that Pedro Manen de Sola-Morales has joined the team as Managing Director and Head of Iberia to lead Marlborough’s efforts in consolidating its presence in the Spanish and Portuguese leveraged and corporate debt advisory markets. Pedro will be based in Madrid, where Marlborough has opened a new office, to cover the Iberian Peninsula.

Pedro brings 20 years of financing and debt advisory experience, most recently as Head of Corporate Debt Advisory in PwC’s Debt & Capital Advisory Team in Madrid. Before joining PwC, Pedro had senior roles in leveraged finance and corporate banking teams at RBS, Calyon and BNP Paribas.

Pedro’s appointment will help Marlborough develop its unparalleled track record in advising private equity and corporate clients in relation to debt raisings, refinancings, amendments and restructurings by adding a dedicated coverage and execution capability for Iberian borrowers. Pedro will be building on Marlborough’s completed deal track record in Iberia, the most recent of which being the unitranche financing for Portobello Capital’s acquisition of Vivanta, the leading dental care and aesthetic medicine platform that operates over 265 clinics across Spain.

Commenting on the appointment of Pedro Manen de Sola-Morales, Marlborough Managing Partner, William Allen, says: “We are extremely pleased that Pedro has joined our team. His joining is a mark of the strength of our commitment to the Iberian market and he will be invaluable in further developing our business in Spain and Portugal to both domestic and international clients.”

Pedro Manen de Sola-Morales added: “I’ve long admired Marlborough’s success as Europe’s leading independent debt advisor and am delighted to be joining them to lead the expansion of their business into Iberia through bringing both domestic and, importantly, international capital solutions to the private equity and corporate communities in Spain and Portugal.”

For further information, please contact:

William Allen +44 (0)7776 236939 wa@marlpar.com

About Marlborough Partners

Marlborough Partners, based in London, Frankfurt and Madrid, provides specialist, independent advice to private equity firms, portfolio companies, public companies and corporates, on sourcing and structuring debt and other non-equity finance. Since 2003, the Marlborough team has advised on over 240 completed transactions – from the straightforward to the highly complex – comprising over €57.5bn of primary market debt issuance, waivers and amendments and loan restructurings in eleven European jurisdictions. For further information, visit www.marlboroughpartners.com

Marlborough Partners advises on its 200th deal

Marlborough Partners, the independent debt advisory firm, today is pleased to announce the team has advised on its 200th deal, totaling more than €50 billion of debt facilities.

 

The 200th deal coincides with numerous notable engagements across the UK, Ireland, France, Germany, the Netherlands and Spain over the past few weeks including the following:

 

  • the c. €2 billion debt financing in support of the acquisition of Cott by Refresco;
  • the multinational club refinancing  of Virgin Active, a portfolio company of Brait;
  • the 1st loss / 2nd loss staple and subsequent acquisition financing of Voogd & Voogd (sold by Bencis to Five Arrows);
  • the €230 million cov-loose institutional refinancing of Averys, a portfolio company of Equistone Partners Europe;
  • the cov-lite institutional refinancing of Premier Lotteries Ireland, a portfolio company of Teachers Private Capital;
  • the bank led financing in support of the acquisition of Duagon by Deutsche Beteiligungs AG; and
  • the fund led financing in support of the simultaneous multiple acquisitions of dental care and aesthetic medicine clinic networks in Spain by Portobello Capital.

 

The Marlborough team comprises over 20 advisory professionals of which 7 are highly experienced senior partners covering clients across all the major European geographies.

Marlborough Partner, David Parker, said: “Since our founding we have been fortunate to advise on a highly diverse range of ground breaking debt advisory mandates and reaching this milestone is testament to the experience and dedication of the Marlborough team and to the ever increasing demand for our services across our private equity and corporate clients”

 

For further information, please contact:

David Parker +44 (0)203 053 3601 djp@marlpar.com

 

About Marlborough Partners

Marlborough Partners, based in London and Frankfurt, provides specialist, independent advice to private equity firms, portfolio companies and corporates, on sourcing and structuring debt and other non-equity finance.  Since 2003, the Marlborough team has advised on 200 completed transactions – from the simple to the highly complex – comprising over €50bn of primary market debt issuance, waivers and amendments and loan restructurings in eleven European jurisdictions. For further information, visit www.marlboroughpartners.com

Q1 2017 Market Update

Marlborough Partners, the independent debt advisory firm, today published its report on the European leveraged finance market for Q1 2017.

 

The report, analysing data from a number of sources, shows European leveraged loan volumes increased by more than 140% compared to Q1-’16 (€34bn vs. €14bn) aided by too much money chasing too little opportunities in the market. The European High Yield market goes hand in hand with the European leveraged loan market reflected by volumes up c. €17bn (c. 2.3x higher compared to the same quarter last year) with low-yielding double-Bs dominating the market as well as a high number of refinancings.

In the UK, institutional spreads have come down further, following the trend initiated in Q4-’16, resulting in an average institutional spread of c. 386bps at the end of Q1-’17. This trend is driven by strong underlying market conditions and an ongoing imbalance in supply and demand.

Marlborough Partner, Markus Ehrler, said: “During the first quarter of 2017 we’ve seen significantly higher leveraged finance volumes combined with a substantial relaxation of financial covenants (more than 70% of European large market deals are done on a cov-lite basis). Furthermore, the amount of available liquidity in the market is such that some deals are now repricing within a very short time frame (some within a 3 to 6 months period).”

Aubrey Simpson-Orlebar joins Marlborough Partners as Senior Adviser

8th May 2017

Marlborough Partners, the independent debt advisory firm, today announced that Aubrey Simpson-Orlebar has joined the corporate debt advisory team led by recent hire Tim Metzgen.  Aubrey will be a senior adviser based in London, where Marlborough has its head office.

 

Aubrey brings 30 years of debt market experience, having been an Executive Committee member of Lloyds Banking Group’s capital markets team and subsequently of its corporate restructuring group.  At Lloyds, Aubrey headed the debt private placements team and founded its fixed income business ahead of managing and restructuring a major portfolio of stressed corporate real estate and trading businesses.  At BNP Paribas, he was one of the geography heads of debt and equity capital markets and then head of special situations in London and New York.  Since leaving Lloyds in 2013, Aubrey has been acting as an independent consultant.

 

Aubrey will be focussed on providing dedicated coverage for UK corporate borrowers helping Marlborough develop on its unparalleled track record in advising clients in relation to debt raising, refinancing and restructuring.  Marlborough has completed 14 engagements so far during 2017 demonstrating the breadth of Marlborough’s services, including the asset based refinancing of First Milk, the financing in support of the acquisition of Treetops by Busy Bees and the acquisition of Danwood by Apogee.

 

Commenting on the appointment of Aubrey Simpson-Orlebar, Marlborough Managing Director, Tim Metzgen, said: “We are extremely pleased that Aubrey is joining Marlborough Partners to support the growth of our dedicated corporate offering.  His significant experience and reputation in the debt markets makes him a valuable addition allowing us to broaden our product and client coverage capabilities for corporate clients”

 

Aubrey Simpson-Orlebar added: “I’ve been very impressed by Marlborough’s success and reputation as Europe’s leading independent debt advisor and I am delighted to be joining them to continue the growth of the business in the corporate market.”

Q4 2016 Market Update

Marlborough Partners, the independent debt advisory firm, today published its report on the European leveraged finance market for Q4 2016.
The report, analysing data from a number of sources, shows European leveraged loan volumes increased by 11% compared to prior year with the market uncertainty forecast as a fall out from Brexit not coming to pass. After a relatively difficult Q1, market conditions improved for borrowers driven by significant liquidity.
The European High Yield market showed strong decline (17% vs. 2015) due to an increasingly cov-lite leveraged loan market which is not suffering from pre-payment penalties.
In the UK, institutional spreads for senior loans witnessed a significant reduction over the year, tightening by 80 basis points compared with last year to average 380 basis points. Initially spreads increased in Q4-’15 due to macro concerns but especially the US market proved relatively more attractive (from a debt investor perspective)
The report also reflected that 2016 was a strong year for funds who continued to take market share from banks as the unitranche product continues to penetrate the market. Increased competition in the mid-market direct lending space has led funds to differentiate themselves from banks by financing larger quanta, offering cheap pricing with flexible documentation and/ or in niche markets (i.e. small EBITDA, unusual geography)
Marlborough Partner, Romain Cattet, said: ““Over the last 12 months the leveraged loan market has evolved significantly. We are going through the most ‘borrower friendly’ period in the history of leverage financed with even more flexibility, lower yields and higher leverage multiple than those experienced in 2007. The amount of available liquidity is such that some deals are now repricing less than 6 month after completion”.

Marlborough Partners advises First Milk on its refinancing

February 2nd  – 2017

 

Marlborough Partners, the independent debt advisory firm, is pleased to announce the refinancing of First Milk with a new revolving asset based facility, led by Wells Fargo Capital Finance (UK) (“Wells Fargo”).

 

The innovative structure refinances First Milk’s historic existing facilities and provides additional working capital to assist the growth and development of the business.

 

Having completed the turnaround of the business, the new facility reflects the strength of the business through both significantly improved terms, pricing and flexibility within an asset based facility.

 

The Wells Fargo team was led by Tom Weedall supported by Neil Kerridge and Michelle Titcombe.  Susan Kelly and James Wilson, Maclay Murray & Spens were the legal advisers to First Milk and Georgia Quenby and Victoria Thompson, Reed Smith, and Morton Fraser advised Wells Fargo.  Hilco Valuation Services provided the due diligence.

 

Clive Sharpe, Chairman at First Milk, said: “I am delighted with the financing package we now have in place.  Through the hard work and support of our advisers and new lender, we are able to reinforce our position as a key partner for Britain’s dairy farmers.  The long term facility is aligned to our stable business model to focus on and support our long-standing members.”

 

Tim Metzgen, Managing Director and head of Corporate debt advice at Marlborough Partners, led this transaction supported by Vijay Gupta.  Tim added: “We are delighted to have advised First Milk on an innovative facility that aligns itself with the business’s long term objectives and its position as a leading British dairy co-operative.  This facility’s flexible structure and competitive terms reflects the experienced management team and the strong credit strength of the First Milk business.”

 

Steven Chait, Managing Director and head of EMEA at Wells Fargo Capital Finance said: “We are very pleased with the opportunity to work with such a great company and management team.  The asset-based credit facility put in place for this transaction demonstrates the breath of capabilities and financial solutions Wells Fargo Capital Finance can customise for its clients.  We are pleased to provide a solid platform for First Milk to continue to provide the highest level of service to its members, customers and suppliers, something we understand and relate to.”

 

END

For further information, please contact:

David Parker +44 (0)203 053 3601 djp@marlpar.com

 

For media enquiries, please contact:

Lee Truelove, Head of farm services & communications, +44 (0) 7767 241507 leetruelove@firstmilk.co.uk

 

About First Milk

First Milk is the UK’s only major dairy company, 100% owned by British farmers.  It supplies a wide range of dairy products and dairy ingredients to customers in both national and international markets including block cheeses, raw milk, butter, skimmed milk powder & whey proteins.  It is headquartered in Glasgow with four manufacturing sites across England, Scotland and Wales.

 

About Marlborough Partners

Marlborough Partners, based in London and Frankfurt, provides specialist, independent advice to private equity firms, portfolio companies and corporates, on sourcing and structuring debt and other non-equity finance.  Since 2003, the Marlborough team has advised on 182 completed transactions – from the simple to the highly complex – comprising €50bn of primary market debt issuance, waivers and amendments and loan restructurings in twelve European jurisdictions and the USA.  For further information, visit www.marlboroughpartners.com

 

About Wells Fargo Capital Finance

A Wells Fargo Company, provides comprehensive asset-based lending to a wide spectrum of companies across the U.K. with credit needs ranging from £10 million upwards. Offices located in London, Birmingham and Manchester, we provide a flexible financing option for companies facing a variety of situations, including: growth, leveraged buyouts, refinancings, restructurings, early and mid-staged turnarounds, mergers and acquisitions.

Q3 2016 Market Update

Marlborough Partners, the independent debt advisory firm, today published its report on the European leveraged finance market for Q3 2016.

The report, analysing data from a number of sources, shows European leveraged loan volumes significantly higher for the quarter compared to prior year (73%). This was primarily due to a notable increase in opportunistic refinancing and recapitalisation activity following a decrease in yields over the quarter. The European high yield market also grew in tandem with its loan market counterpart, with Q3’16 volumes up 81% on the prior year.

In the UK, institutional spreads for senior loans witnessed a significant reduction over the quarter, tightening by 62 basis points compared with last quarter to average 488 basis points. This followed central bank monetary easing in response to the ‘Brexit’ vote, as well as a reflection of pent up investor demand.

The report also reflected on the increasing interest of fund level financing by private equity funds, as an additional source of third party capital to enhance equity returns or accelerate distributions to LPs, as well as provide an alternative capital source when traditional leveraged debt at a portfolio level is no longer an option.

Marlborough Partner, Gurjit Bedi, said: “The number of enquires made by sponsors has increased dramatically over the last 12 months for fund level financings particularly in the mid-market across Europe.  Whilst there are a number of interesting alternative products the purpose of implementing the facility may well be very different, the nature of the instruments is still bespoke and requires a tailored approach to structuring and implementation for each sponsor”.