Silver Lake seeks 1 bln euro syndicated loan to fund Software AG deal (updated)

Software AG

17/07/2023 10:03

(Adds deal context, market background)
       LONDON, July 17 (Reuters) - Private equity house Silver
Lake is looking to raise about 1 billion euros ($1.12 billion)
of debt to fund its takeover of German technology group Software
AG  SOWGn.DE , a term sheet seen by Reuters showed on Monday,
breathing new life into the sluggish leveraged loan market.
    Banks including JPMorgan  JPM.N , Citigroup  C.N  and Banco
Santander  SAN.MC  are marketing the seven-year loan to
investors at a discount of 97 cents on the euro with interest of
500 basis points over the benchmark rate.
    Last year rising 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.
    While conditions have improved since then, banks are now
battling to regain market share lost to private credit funds,
which have become a regular source of funding even for large
leveraged buyouts.
    
($1 = 0.8898 euros)

 (Reporting by Pablo Mayo Cerqueiro
Editing by Jason Neely and David Goodman)
 ((Pablo.MayoCerqueiro@thomsonreuters.com;))