KKR’s $25 billion purchase of RJR Nabisco had been the initial – and continues to be the many (in)famous – of this high-flying LBOs. Struck through the loan market’s days that are formative the RJR deal relied on some $16.7 billion in loan financial obligation.
You start with the big buyout that is leveragedLBO) loans for the mid-1980s, the leveraged/syndicated loan market is among the most principal means for business borrowers (issuers) to tap banking institutions as well as other institutional money providers for loans. This is because easy: Syndicated loans are less costly and much more efficient to manage than conventional bilateral – one business, one loan provider – credit lines.
dollars for an issuer looking for money. The issuer pays the arranger a charge for this solution and, obviously, this charge increases because of the complexity and riskiness for the loan. Continue reading “Arrangers serve the time-honored role that is investment-banking of investor”