The banks trust Henry

As I wrote on CFO.com last week, LBO dealmakers have access to cheap debt. New proof of that came out today. According to Reuters, KKR got the cheapest borrowing rates ever for a leveraged buyout.  For the acquisition of Gardner Denver KKR is borrowing $2.4 billion in loans and $575 million in bonds. The blended average interest rate is 4.8 percent! KKR also arranged a $400 million revolver. The financing was rated single “B.” That’s junk territory, folks.

The interest rate was only this big.

The interest rate was only this big.

(A side note: the loan syndicated banker quoted in the piece calls KKR a “best-in-class” financial sponsor. He must not be following the demise of payments company First Data, which KKR has rode into the ground.)

About vincentryan2013

Editor in chief, Digital Platforms, at CFO Publishing
This entry was posted in Banking, Corporate debt, Corporate finance, Leveraged buyouts, M&A, Private equity. Bookmark the permalink.

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