Americans may not get loans. LBOs? They’re fine

Qualtrics International

17/03/2023 14:26

(The author is a Reuters Breakingviews columnist.  The opinions
expressed are his own.)
    By Jonathan Guilford
       NEW YORK, March 17 (Reuters Breakingviews) - SVB’s
rescue means that smaller banks will tighten lending standards,
making it more difficult for people to get financing for homes
and businesses. But this week, three big private equity deals
landed debt from banks. Financial conditions are tightening, but
only for some.
    Full view will be published shortly.
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    CONTEXT NEWS
    Private equity firm Silver Lake Partners announced on March
13 that it had agreed to acquire experience management software
company Qualtrics International for $12.5 billion, in a deal
supported by $1.8 billion in equity from the Canada Pension Plan
Investment Board and $1 billion in debt financing. 
    On March 14, Blackstone announced the acquisition of
meetings technology provider Cvent for $4.6 billion including
debt. Vista Equity Partners, Cvent’s majority owner, will invest
a portion of its proceeds from the sale in non-convertible
preferred stock financing, while banks are providing a further
$1 billion in debt. 
    The same day, Apollo Global Management said it would
purchase chemicals and ingredients distributor Univar Solutions
for $8.1 billion. Abu Dhabi Investment Authority will invest in
a minority stake. Nine banks, led by JPMorgan, are providing
debt financing of over $4 billion, sources close to the deal
told Breakingviews. 

 (Editing by Lauren Silva Laughlin, Sharon Lam and Amanda Gomez)
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