Syndicated Scoop for March 2018: Uber’s Unconventional Direct Loan, Market Downturn, and More
3 April 2018
Syndicated Scoop is a monthly newsletter featuring a recap of the top stories and insightful commentary related to the commercial and syndicated lending industry.
Success for Uber’s direct loan despite driverless fatality
Uber Technologies’ self-arranged syndicated loan was increased to US$1.5bn, justifying the taxi app company’s unconventional approach to raising the loan and succeeding despite news that one of the company’s self-driving cars had killed a pedestrian. According to Thomson Reuters LPC, the groundbreaking seven-year new-money loan was placed with investors directly through Uber’s capital markets team, rather than through a syndication process led by arranging banks, and also priced tight of guidance. Read more.
Private equity firms brace for downturn
Thomson Reuters LPC reports that senior participants are warning that today’s market could be as good as it gets, despite a robust global economic backdrop and buoyant mood in the private equity and leveraged loan markets. Comparisons to 2007’s pre-crisis conditions are becoming more common and industry figures are debating whether today’s robust conditions constitute a bubble, as purchase prices rise, jumbo buyouts proliferate, and deal terms become more aggressive. Read more.
UBS combines equity, debt capital markets teams in Asia Pacific
According to Bloomberg, UBS is combining its Asia-Pacific equity and debt capital markets divisions in a move to streamline the business. The announcement came soon after the Hong Kong securities regulator banned UBS from sponsoring initial public offerings for 18 months and fined the bank US$15m. However, UBS told the Financial Times that the tie-up is unrelated to the IPO sponsor ban. Read more.
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View the previous edition of Syndicated Scoop.