Advent drives high yield’s acquisition finance trend

Author: Danielle Myles | Published: 18 Feb 2011

The financing for Advent’s acquisition of The Priory Group has highlighted the continuing trend of high yield being used for acquisition finance.

"Private equity is paying more attention to high yield in order to avoid using bridges," said Jacques McChesney, partner at Shearman & Sterling, who advised Advent on the financing for the deal.

The financing comprised a high yield bond offering of £425 million of senior secured notes due 2018 and £175 million of senior notes due 2019 for the acquisition, and the provision of £70 million super senior revolving credit...