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APAC Chart of the Week: TLBs continue to outshine traditional bank loans backing Australian LBOs in 1H20

APAC Chart of the Week: 9th July 2020 

Term Loan B (TLB) financings continued to claim a bigger market share than traditional commercial bank loans for a leveraged buyout (LBO) deals in Australia in 1H20, continuing the trend from 2H19 and for entire 2019.

Of the total USD 3.6bn loans that funded LBOs completed in the country during 1H20, TLBs accounted for 52%, traditional bank loans 33%, and unitranche deals the remaining 15%. Likewise, TLBs, bank-led loans, and unitranches accounted for 44%, 37% and 19%, respectively, of LBO loan volumes for the entire 2019.

Traditional bank loans accounted for more than 50% of the total LBO loan volumes in each year in 2015-2018.

Last month, Chicago-based Madison Dearborn Partners priced an AUD 502m-equivalent (USD 346m) first-lien TLB backing its buyout of disability-employment-services business Advanced Personnel Management, while Apollo Global Management- and CIMIC Group-owned Ventia priced a USD 200m and AUD 185m incremental TLB for its acquisition of infrastructure-services provider Broadspectrum.

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Jason Huang-Jones APAC Data Manager Debtwire
Jason Huang-Jones APAC Data Manager Debtwire

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