Silver Lake seeks 1 bln euro syndicated loan to fund Software AG deal
Summary
LONDON, July 17 (Reuters) - Private equity firm Silver Lake is looking to raise about 1 billion euros ($1.1 billion) of debt to fund its takeover of Germanys Software AG (SOWGn.DE), a term sheet seen by Reuters showed on Monday, breathing new life into the sluggish syndicated leveraged loan market. Banks including JPMorgan (JPM.N), Citigroup (C.N) and Banco Santander (SAN.MC) are marketing the seven-year loan at a discount of 97 cents on the euro with interest of 500 basis points over the benchmark rate. Last year the rapid escalation of interest rates left banks unable to profit from selling debt underwritten during the preceding era of cheap money, forcing them to apply heavy discounts to attract investors and in some cases pause new lending. While historically a more expensive source of capital, buyout houses are increasingly looking to private debt for certainty of funding. Earlier this year, Software AG recommended shareholders accept Silver Lakes offer pitched at 32 euros per share, rebuffing interest from rival buyout group Bain Capital.
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