Adevinta Shows How Far Private Lenders Will Go to Win Deals

A race to provide financing for the buyout of classifieds company Adevinta ASA shows that direct lenders are willing to slash their terms in order to win deals, even in a volatile market.

Pricing for direct loans has largely been between 650 and 675 basis points over the Euribor benchmark for the last two years. For Adevinta, where Apollo Global Management and Goldman Sachs Asset Management are involved in the plans, direct lenders are offering 575 points, with an original issue discount at 98 cents on the euro.

That highlights how despite a retreat in risk appetite in recent weeks, ...