11.05.2014

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General News

The November 5th Reuters article, “Jefferies retains $100M of TOMS Shoes term loan,” reported that investors' demands to be paid more in exchange for taking on increased risk have resulted in a variety of changes to a batch of deals caught in the crosshairs of global volatility and the subsequent loan market correction. "In times of market volatility, there are some fears about the strength of the global economy, and that may cause investors to take a closer look at what may be a highly leveraged company," said Ronald Sarubbi, a partner at Perkins Coie LLP. … "I don't think it's their intention to hold onto the debt for their own account," Sarubbi said. "I think they underwrite it to sell the entire loan. That's the reason why some banks will ultimately be willing to sell it at a discount."