The five-year amortized loan from Sajjan India attracted 14 lenders in general syndication. Manjushree Technopack, PE firm Advent International portfolio company also closed the loan of $166m, they drew seven banks. Just last month, another PE giant Blackstone too closed a $180m loan. This loan was to back up its LBO (Leveraged Buyout) of asset and wealth management firms. The firm is ASK Investment Managers with 11 syndicated banks.
Sajjan India closed a strong response despite liquidity competition from a slew of other leveraged financings in the country. This PE firm CVC Capital Partners’ buyout of capital market has a $330m loan backing. The loan seems interesting because it is completely different from the traditional way for lenders. It covers a good mixed sector and provides diversification away from information technology.
Co-head of leveraged and acquisitions finance and head of loan syndications for Asia Pacific HSBC, Ashish Sharma gave remarks. Buyout funds are simultaneously looking to control stakes in diverse sectors. It includes manufactures and industries. It happens due to the increasing familiarity and growing confidence in the underlying Indian corporate ecosystem.
Among dozens of Indian leveraged financings in market in the first quarter loans are Sajjan India, Manjushree Technopack, and ASK Investment Partners. Seven deals in the total of $2.48bn happened last year. It covers a $818m of five-year deal. It gives backing to Blackstone’s acquisition of India’s largest LBO loan, IT provider Mphasis.
The current LBO loans have smaller sizes with conservative structures. Partners Groups’ acquisition is the biggest this year totalling $399m. The acquisition controls a stake in broadband provider Atria Convergence Technologies. The range of 3.25x-4.40x comes from the leverage multiples. It bears PE Asia’s $386m refinancing for healthcare technology firm CitiusTech.
