Wachtell Lipton discusses Acquisition Financing

Acquisition financing activity was robust in 2014, as the credit markets accommodated increased demand from rising M&A activity.  At over $749 billion, global 2014 M&A loan issuance was up approximately 40 percent year over year, the highest total since before the Great Recession.  While the aggregate figures suggest a borrower-friendly market, the actual picture is more nuanced.  Investment grade acquirors benefited from a consistently strong financing environment throughout 2014 and finished the year with a flourish (including a $36 billion commitment backing Actavis’ acquisition of Allergan), while leveraged acquirors encountered more volatility, as lenders responded quickly to regulatory changes and … Read more