US Second-Lien Market Could Be Primed to Reopen to Syndications
Gary Rosenbaum said the return of second-lien debt to financial markets bodes well for future sponsor-backed activity, as this is a crucial part of the capital structure when banks can’t underwrite first-lien debt without regulators objecting. « The bottom line is you really need availability on the second-lien debt market, » Mr. Rosenbaum said. « We are seeing a pickup in activity. There are a lot of auctions percolating out there. If there’s a stable source of financing and second-lien debt comes back, then I think the fourth quarter could get active and interesting. » Read the full article.