Leverage Finance - Acquisition Financing
Anyone know the differences between admin agent vs. book runner vs. lead arranger vs. doc agent? How many banks are involved in a vanilla acquisition financing? How much do each bank, depending on their role, charge for their fees in connection with this type of financing (let's say 500MM)?
Agents - banks, bookrunners - B-D arms of banks (i.e. Wells Fargo Bank NA and Wells Fargo Securities LLC)
Generally Admin Agent is going to be the lead bank doing the financing (left lead).
Fees are going to depend on company size and best efforts vs. underwritten.
Leverage and Acquisition finance (Originally Posted: 12/09/2013)
Is there a difference between those two groups above
Yes-Leveraged Finance/Financial Sponsoring and Mergers and Acquisitions.
My understanding is that it depends on the bank. Sometimes they are together:
http://www.hsbcnet.com/gbm/products-services/financing/leveraged-acquis…
Sometimes they are separate:
http://cib.bnpparibas.com/Products-services/Financing-your-business/Cor…
http://cib.bnpparibas.com/Products-services/Financing-your-business/Lev…
LevFin is going to be focused solely on financial sponsor deals. Acquisition financing typical involves strategic M&A. LevFin also tends to be non-investment grade (at least at some firms - i.e. BarCap).
Isn't LevFin always non-investment grade? Can't think of any where that isn't the case, but I'm not familiar with all the LevFin groups either. (This is curiosity not an attempt to cause an argument).
I thought so, but wasn't positive. Work in the MM and don't really track all of the changes at the bulge level deals.
lev fin is always non-investment grade, both for (i) sponsor-backed companies, and (ii) non-sponsor backed companies that issue non-investment grade debt
acquisition finance can vary by bank, but often is small group that has niche of structuring particular types of acquisition financing (e.g., bridge loans)
It is the same group. It is NOT the M&A group.
Lev Fin is heavily involved with acquisition financings, which is where that extension of the name is derived from.
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