What Europe’s LBO debt wall means for the future of financing

Author: Gemma Varriale | Published: 25 Sep 2012

Up to $550 billion of European LBO loans are due to mature between now and 2016. What are the options for addressing the huge refinancing burden and what new trends are emerging in this changed financial landscape?

According to research commissioned by Linklaters, the annual volume requiring refinancing ranges from $69 billion in 2012 to $103 billion in 2016, hitting peaks of nearly $140 billion in both 2014 and 2015.

The largest requirement is on the UK, which accounts for more than a quarter of Europe’s debt burden. But uncertainty in the eurozone crisis and more stringent regulation requirements has restricted banks’ ability to participate in refinancings.

“There’s a perfect storm at the moment,” said Chris Howard, a London-based partner in Linklaters’...



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