Lead Left Interview – Michael Babiarz (Part 2)

This week we conclude our conversation with Michael Babiarz of Clayton, Dubilier and Rice. Michael is a partner of the firm and been with CD&R since 1990.  Second of two parts – View part one

The Lead Left: How do you view what’s going on with banks from a regulatory perspective?

Michael Babiarz: If you look back six months or so the traditional investment banks were reluctant to commit underwriting dollars. That’s changed dramatically. They’re even back to underwriting second lien debt, much to my surprise.

TLL: What’s the financing outlook from what you’re seeing?

MB: From an absolute cost of capital perspective, financing costs are still extremely low from a historical standpoint, and the markets are liquid. We’ll certainly look at refinancings and accelerate timetables to take advantage of market conditions. We used to go to eight banks to get four proposals. Now we get eight proposals.