This week we continue our conversation with Deloitte’s Ned Music and Fenton Burgin. Mr. Music is an SVP in the US firm’s Deloitte Corporate Finance LLC Capital Advisory team while Mr. Burgin heads up Deloitte LLP’s UK Capital Advisory practice. Capital Advisory has 140 debt professionals in 30 countries dedicated to the middle market. Mr. Music will be a moderator at the upcoming Middle Market Symposium on May 17-18 [link]. Second of two parts – View part one
The Lead Left: Where’s bank pricing shaking out?
Ned Music: The first out piece is typically priced at L+350 and the second out piece is at L+700. The blended cost is lower than where unitranche pricing is.
TLL: How do you compare the relative merits of lending in Europe vs. the US?
NM: Structures are more flexible and pricing is currently better in the EU than in the US. The market is more competitive in Europe, and some lenders are less disciplined on credit controls than in the US. Some newer funds try to be more competitive with elements such as covenant flexibility.