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...