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Europe: Credit Suisse hires Grinnell to Leveraged Finance and Sponsors Group

credit-suisse-group_200x200_optMatthew Grinnell has been appointed as a managing director in Credit Suisse’s Leveraged Finance and Sponsors Group, based in London, according to market sources. He will report to Mathew Cestar and Didier Denat, co-heads of the Leveraged Finance and Sponsors Group in EMEA.

Grinnell joins Credit Suisse from Barclays, where he was chairman of the Financials Sponsors Group in EMEA.

The bank has been beefing up its Leveraged Finance and Sponsors Group, with other recent additions including Luis Vitores and David Savage, both of whom will be focusing on first-time corporate leveraged finance issuers, principally in the mid-cap sector. – Sarah Husband

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Europe: Aurelius creates division to invest in German SME LBOs

aurelius_logo01_klAurelius Group has created a new investment division, Aurelius Mittelstandskapital, through which it will invest in profitable companies with strong management and growth potential, according to a company release.

Aurelius Mittelstandskapital will take majority interests in German SMEs with annual revenue of up to €50 million, in the form of leveraged buyouts. Investment criteria include the ability to demonstrate a double-digit EBITDA margin, a good cash flow profile, an established market position, and a good customer base, together with the potential to expand revenue and earnings via organic growth and add-on acquisitions.

Four M&A professionals will join the division directly from Aurelius Group, and the newly formed investment team will focus on the large number of potential takeover targets in the German-speaking area, which includes family enterprises and mid-sized firms.

Aurelius Group is a listed, mid-market pan-European investor, with a focus on the Industrials, Chemicals, Business Services, TMT, and Consumer sectors. It targets pan-European private and public companies with revenue of £30-750 million. – Staff reports

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CLO roundup: US/Europe see second busiest week, pricing nine CLOs

The CLO markets have definitely not gone fishin’ this month. Last week was the second busiest week of the year globally, with $5.11 billion of volume across nine new CLO transactions. The U.S. priced seven deals, and Europe churned out two more, leaving global volume at $89.86 billion in the year to date, according to LCD. The busiest week globally this year is the week ended June 6, when $7.2 billion of new CLO transactions priced.

Players do not expect more deals to price out of Europe this month. But activity is likely to resume quickly in September, with Carlyle and 3i expected to be among the first out of the blocks, according to market sources. With 15 managers and more working on new deals, the autumn market could be crowded, so managers will want to ensure decent air time among investors by getting deals out promptly.

LCD subscribers can click here for full story, analysis, and the following charts:

  • US Deal pipeline
  • European arbitrage CLO issuance and institutional loan volume
  • European Deal pipeline

– Sarah Husband

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YouTube: August 2014 European leveraged loan market analysis

LCD’s video analysis detailing the European leveraged loan market in July and early August 2014 is now on YouTube.

July was a busy month for the European leveraged loan market. Total volume of new loan issuance hit €14.6 billion, making it the biggest month since July 2007.

July was a breakout month for covenant-lite issuance. By early August, however, there were signs of weakness in secondary markets, particularly on the high-yield side. Arrangers say there is a busy pipeline in the works for September.

If the market is to return in the autumn at the same pace it set in July, it will need to be supported by positive investor sentiment and strong demand for assets.

In this month’s video LCD looks at:

  • European Leveraged Loan New-Issue Volume
  • Cov-lite Volume
  • European Second-Lien Volume
  • Average Pro Forma Leverage Ratio
  • European Leveraged Loan Volume By Purpose
  • European Leveraged Loan Repayments

And here.

The URL:

Click here to download PDF slides of the video on Slideshare.

URL for the slides:

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