McDermott Comment | Takeover of ‘Pioneering’ Asda is Straight Out of the Private Equity Playbook


Mark Fine, partner at law firm McDermott Will & Emery, said:

“The debt markets have always played an integral role in the private equity space and present liquidity in the market is allowing borrowers favorable debt packages with pricing regularly inside initial guidance. The abundance of dry powder and investor demand have helped to fuel this demand and drive pricing down. Spreads are now back to pre-COVID levels. This has meant a busy start to the year in both the loan and high yield markets and Asda is one of a number of large primary issuances coming to market in the forthcoming weeks. The markets are somewhat in contrast to the macro picture, where European economies have stood still and lockdowns continue which suggests a dislocation between the fundamentals and technicals.”

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