The cost of Unitranche debt continues to rise.
Exclusive - The margin per leverage round has reached its highest level since 2018 in the fourth quarter. Published on March 12, 2024, at 17:54 by Florent Le Quintrec
The latest Aether FS Unitranche France index indicates that margins applied by unitranche lenders in small to mid LBO (leveraged buyout) transactions have continued to rise in the fourth quarter of 2023. When asked about the cost of unitranche debt, Edouard Narboux, CEO of Aether Financial Services, and Louis Thuillez, Head of Private Debt Execution at Aether, share their insights on the unitranche debt market in France.
“Just a year and a half ago, no borrower would accept a unitranche debt cost in double digits. That is no longer the case today; issuers have accepted the rise in borrowing costs, which explains the overall increase in unitranche rates,” notes Edouard Narboux, Managing Director of Aether Financial Services.
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