In the Press
May 23, 2023

End of Tegna Buyout Clears Path for Banks to Fund More LBOs (Bloomberg)

Wall Street banks looking to finance lucrative buyouts as dealmaking shows signs of recovery have one less obstacle: they’re off the hook from selling a large slug of worrisome debt. “Private equity deals and M&A are still limited. But I think it’s coming, I do see it breaking loose,” said Kristopher Ring, a Debt Finance partner. Banks have also been competing with private credit firms. These direct lenders had swooped in to fill a gap left by banks that were struggling with around $40 billion of risky loans and bonds stuck on their balance sheets at the start of the year as investors shunned risk in the wake of the Federal Reserve’s aggressive rate hikes. “Most of the banks are out from under the deals that were hung last year. They are ready to move on,” Ring said to Bloomberg. “But they are still pricing a little too wide for private equity sponsors, who prefer private credit.