(Reuters) Red-hot investor demand for U.S. leveraged loans is helping institutions not bound by federal lending guidelines to lead and sell aggressive deals that traditional arranging banks are unable to provide.
Deals that could have drawn regulators’ ire if arranged by traditional banks, including a US$1.375bn repricing for mixed martial arts franchise Ultimate Fighting Championship (UFC), which was originally criticized for accounting adjustments, and a highly leveraged US$1.6bn repricing for Tibco Software, sailed through the market when led by KKR and Jefferies, respectively.Demand is strongly exceeding a limited supply of new deals in the US market as cash continues to pour into the asset class.
