LONDON (Reuters) – Private equity house Silver Lake is looking to raise about 1 billion euros ($1.12 billion) of debt to fund its takeover of German technology group Software AG, a term sheet seen by Reuters showed on Monday, breathing new life into the sluggish leveraged loan market.
Banks including JPMorgan, Citigroup and Banco Santander are marketing the seven-year loan to investors at a discount of 97 cents on the euro with interest of 500 basis points over the benchmark rate.
Last year rising interest rates left banks unable to profit from selling debt underwritten during the preceding era of cheap money, forcing them to apply heavy discounts to attract investors.
While conditions have improved since then, banks are now battling to regain market share lost to private credit funds, which have become a regular source of funding even for large leveraged buyouts.
($1 = 0.8898 euros)
(Reporting by Pablo Mayo Cerqueiro; Editing by Jason Neely and David Goodman)
