PRINT THIS PAGE Why more of today's LBOs use ABL
18/06/2003. Source:Fleet Capital. James G Connolly
The US leveraged buy-out market has gathered momentum over the last few months. At the same time, the financing to fuel such transactions has developed rapidly. James G Connolly of Fleet Capital discusses the use of asset-based loans in US leveraged buy-out deals.
Total US leveraged buy-out transaction volume during the first quarter of 2003 reached $14.5bn, almost 4.5 times as much as the same period the previous year. There are a number of reasons why equity sponsors are relying on ABL, including having greater leverage, being more economical and involving fewer covenants.
Copyright © 2003 Fleet Capital
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James G Connolly is president and CEO of Fleet Capital.
This article was originally published on AltAssets through Fleet Capital. As a result of the merger of FleetBoston - the parent company of Fleet Capital - and Bank of America in 2004, Fleet Capital is now Bank of America Business Capital
Bank of America Business Capital, one of the world’s leading asset-based lenders, finances the needs of mid and large-sized businesses in the U.S, Canada and Europe. They provide asset-based loans from $10 million to $1 billion for working capital, acquisitions, turnarounds, recapitalization and DIP financing. For more information please visit www.bofabusinesscapital.com
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