New margin bonds to fund Asia M&A

Author: Gemma Varriale | Published: 4 Dec 2013
  • The use of high-yield bonds to fund non-controlling buy-outs is tipped to be a key development for the M&A market in 2014;
  • The new structure could be transformative for buy-outs of family-controlled companies in Asia;
  • Cov-lite terms from European banks and an increasing desire to structure funds in euro are also tipped to be upcoming trends.

The use of high-yield bonds to fund non-controlling buyouts is tipped to be a key development for the M&A market in 2014. The structure could be transformative for deals in Asia.

As money continues to surge into the high-yield market, fuelled by the clamour from investors for higher risk products, creative structures are becoming increasingly common.

At a press briefing in London this week,...