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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’ Q2 2018 Report

Marlborough Partners, the independent debt advisory firm, today published its report on the European leveraged finance market for Q2 2018.

The report, analysing data from a number of sources, shows UK leveraged loan volumes were €5.4bn in Q2‘18, 29.5% higher than the same period last year as strong issuance levels continued in 2018. These high issuance levels were driven by a marked increase in M&A activity which began towards the end of 2017 and then delivered consistent deal flow throughout H1’18. 84% of total loan deal activity in Q2’18 was driven by M&A, the highest proportion since Q3’11. The prevalence of M&A activity has driven slightly wider pricing, reflecting greater lender negotiating power on new money transactions as opposed to opportunistic repricings and refinancings.

The Q2 2018 Report also looks at the concentration of the lending landscape in Europe’s largest markets the UK and Germany. Markus Ehrler, Partner, said: “The leveraged lending landscape in Europe’s largest markets UK and Germany is characterised by both pan-European and local players. While debt funds are mostly pan-European, the banking landscape is diverse with domestic players playing an important role. The banking market in the UK is highly concentrated with only 6 banks accounting for 80% of all participations for LTM June 2018, while the German-speaking banking landscape in the mid-market is much more fragmented with 17 banks representing 80% of all participations.”

Marlborough Partners UK-DACH Quarterly Snapshot Q2-2018

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 245 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

Marlborough Partners’ Q1 2018 Report

Marlborough Partners, the independent debt advisory firm, today published its report on the European leveraged finance market for Q1 2018.

The report, analysing data from a number of sources, shows the UK significantly increased its share of the European Leveraged Loan market in the quarter with leveraged loan volumes in the UK of €13.9bn, greater than the three previous quarters combined. This was driven by an increase in average deal size, with several large landmark deals closing in the quarter. Issuance in the wider European Leveraged Loan market continues to track the record pace set in 2017 with total volumes marginally up on the same period last year (€35.7bn vs. €35.3bn). Despite yields widening, they are still close to historically low levels and the European high-yield market remains solid, hosting €19.6bn of bond volume in the quarter, which was down on the €24.9bn generated in Q1’17 but above Q3’17 levels.

The Q1 2018 Report also reflects on the evolution of the Private Debt market over the last 7 years. Marlborough Partner, Romain Cattet said: “Private debt has been one of the few success stories to emerge from the global financial crisis as debt fund managers filled the gap left by the shying away of traditional banks from riskier lending driven inter alia by higher capital requirements due to Basel II and subsequent iterations, and the Fed/ECB guidance on leveraged transactions. As the abundance of private debt funds increases so does the range of products they offer. These funds now come in many forms and employ a wide range of strategies with different risk/return profiles; their product suite extends well beyond the plain vanilla Unitranche. As banks remain risk averse and mono-product with limited ticket sizes, they are likely to continue to lose market share to these now well-established players.”

Marlborough Partners – UK & DACH Quarterly Snapshot – Q1 2018

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 233 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

Marlborough Partners’ Q4 2017 Report

Marlborough Partners, the independent debt advisory firm, today published its report on the European Leveraged Finance market for Q4 2017.

The report, analysing data from a number of sources, shows European leveraged loan volumes stood at a post crisis high at €120bn, up 70% on 2016. High yield bond volumes were similarly robust in 2017 with €94bn issued representing a strong year for leveraged finance deal volumes.

The Q4 2017 Report also discusses some of the recent trends seen in the Private Debt market. 2017 was a fantastic year for private debt across the European landscape, with some of the largest private debt funds raised in Europe and new private lending strategies launched. In particular, the proliferation of super senior and unitranche structures (1st Loss / 2nd Loss structures) has seen a growing acceptance of private debt solutions across Europe.

Marlborough Managing Partner, Gurjit Bedi, said: “Private debts funds have dominated the European mid-market in a way not seen historically, they are now seen typically as the preferred primary financing option for many Sponsors.  In addition, notwithstanding the tight yields we have seen over 2017 in the loan markets, a number of credits which might have been suitable candidates for the TLB loan market have opted to go down the private debt route for a multitude of reasons.  Given the emerging step change of fund hurdles and different pools of capital being raised by these funds, for stellar credits we are expecting to see a pricing compression on 1st /2nd Loss structures, offering blended pricing close to where the Term loan B markets was 18 months ago”

Marlborough Partners – UK DACH Quarterly Snapshot – Q4 2017

For further information, please contact:

Gurjit Bedi, +44 (0)203 053 3606, gsb@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 228 completed transactions – from the simple to the highly complex – comprising over €57bn of primary market debt issuance, waivers and amendments and loan restructurings in 11 European jurisdictions. For further information, visit our website www.marlboroughpartners.com

Marlborough Partners’ Q3 2017 Report

Marlborough Partners, the independent debt advisory firm, today published its report on the European Leveraged Finance market for Q3 2017.

The report, analysing data from a number of sources, shows European leveraged loan volumes at Q3 stood at €85bn, up 71% YoY, with high yield bond volume for Q3 at €65.2bn which is significantly ahead of the YoY total of €43bn. These strong levels of volume have seen the recent trend of “too much money chasing too few deals” potentially beginning to reverse although questions remain as to whether this is likely to continue given the typical “lumpy” nature of leveraged finance volumes.

Finally, this edition of the Quarterly review also discusses how direct lending credit funds might behave in stressed scenarios. In the benign years that have followed the last credit cycle, while credit funds have rapidly grown market share, there has been a lack of stressed deals such that most funds remain untested. However, an uptick in stressed situations in 2017, driven largely by continued pressures in certain sectors such as retail and oil and gas services, has seen the emergence of certain behavioral traits.

Marlborough Managing Partner, Jonathan Guise, said: “For many years we have been asked how direct lending funds behave in stressed scenarios. This has been virtually impossible to answer given benign credit markets have resulted in an almost complete lack of stressed situations to test them. However, 2017 has seen a notable uptick in stressed situations involving direct lenders and a clearer picture is starting to emerge. The lessons learned so far will no doubt be extremely valuable when we inevitably enter the next cycle”.

Marlborough Partners – UK & DACH Mid-Market Quarterly Snapshot – Q3 2017

For further information, please contact:

Jonathan Guise +44 (0)203 053 3602 jg@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 218 completed transactions – from the simple to the highly complex – comprising over €55bn of primary market debt issuance, waivers and amendments and loan restructurings in eleven European jurisdictions. For further information, visit www.marlboroughpartners.com

Marlborough Partners’ Q2 2017 Report

The firm is pleased to announce the report covers both the UK and, for the first time, the DACH Leveraged Loan markets as a result of the ever growing Pan-European presence of Marlborough Partners.

 

The report, analysing data from a number of sources, shows European leveraged loan volumes were c. €58bn for H1’17 which was c. 1.9x higher compared to H1’16, reflecting the ever continuing theme of ‘too much money’ chasing ‘too little product’. The European high yield market also grew in tandem with its loan market counterpart, with volumes almost doubling compared to H1’16.

 

With market yields falling in the latter half of 2016 and continuing in the first half year of ‘17, activity in the European Leveraged Loan market has been dominated by opportunistic refinancings and repricings, as borrowers sought to take advance of lower pricing. The ongoing trend of tighter spreads is driven by strong underlying market conditions, imbalance in supply and demand and a lack of investor pushback.

 

The report also considered the looming implementation of ECB leveraged lending guidelines in November 2017. A number of important considerations are raised in the report such as the fact that a significant number of bank participants will not be covered by the guidelines and that the leverage cap of 6x gross leverage currently includes undrawn facilities including baskets, freebies, incrementals and accordions which would potentially mean capturing the vast majority of leveraged loans.

 

Marlborough Partner, David Parker, said: “4 years ago banks actively operating in the US leveraged finance market went through a protracted process of understanding and implementing the Fed guidelines. Given the ECB guidelines do differ in some respects to the Fed equivalent, we expect banks operating in the European leveraged finance market to also go through a length process of implementation. Having a view institution by institution of their approach to following these guidelines will be an important consideration for a prospective borrower”

Marlborough Partners – UK & DACH Mid-Market Quarterly Snapshot – Q2 2017

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 204 completed transactions – from the simple to the highly complex – comprising over €54bn 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