Intralinks for Financial Services—Syndicated Scoop is a newsletter providing a recap of the month’s top stories and insightful commentary related to the commercial and syndicated lending industry.
In this month’s Syndicated Scoop…
- Impact of the US tax bill on leveraged loans
- Lenders embrace a record US$103bn bridge loan
- Misys merges with D+H; now Finastra
The Loan Syndications and Trading Association (LSTA) speaks of the impact of the US tax bills on the corporate loan sector, indicating that an overall trend could be toward deleveraging. Additionally, the LSTA says, “The biggest impact [of the tax bill] is likely to be the sponsored space, where companies have higher leverage ratios, lower interest coverage ratios and – anecdotally, at least – pay less taxes.” Read more.
Banks are eager to open their wallets for what could be the biggest syndicated loan financing ever for an investment-grade acquisition, if chipmaker Broadcom’s unsolicited US$103bn bid to buy Qualcomm is accepted, Thomson Reuters reports. ”We’ve been talking about when the first US$100bn deal is going to come for a while,” said one banker, adding there is plenty of demand to accommodate a funding of this size. “The attractiveness of something like this is the fees you get on bonds.” Read more.
According to news reports, Misys and D+H have revealed details of their planned merger, under a new brand name, Finastra, which will be led by Misys CEO Nadeem Syed. The move follows the March acquisition of D+H by Vista Equity Partners, which already owns Misys. “By coming together as Finastra we are committed to enhancing our ability to deliver market-leading products and services, and to being an even more strategic partner to our customers,” says Syed. Read more.
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