Leveraged buyout spreads : a focus on loan maturity

• Main Author: Jesus, João Pedro dos Santos Monteiro de
• Publication Date: 2018
• Format: Master thesis
• Language: eng
• Source: Repositórios Científicos de Acesso Aberto de Portugal (RCAAP)
• Download full: http://hdl.handle.net/10400.14/26373
• topic: Maturity; LBOs; Term structure of spreads; Loan pricing; Maturidade; Estrutura dos spreads

This thesis investigates the determinant factors concerning pricing of loans in LBOs, the term structure of these loans, and determinants of loans maturity, using a sample of 1,196 syndicated loan deals closed from 2000 to 2016. Our results suggest differences in spreads and pricing processes in market-based versus bank-based financial systems as well as in the U.S. versus W.E. EV/EBITDA proved to not have great impact in spreads. Furthermore, the convex relationship found in previous literature [Sorge and Gardanecz (2008), Marques et al. (2015) and Pinto et al. (2016)] could be flattened with the relationship between spread and maturity/EBITDA multiple, with just a slight slope (diverging through the different sub-samples). Results indicate number of tranches, firm size, rentability and deal location to impact maturity in LBOs loans.